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Bond yields trade lower on Wednesday

09 Dec 2015 Evaluate

Bond yields traded lower on Wednesday as investor sentiments got some support with the government stating that the fall in foreign portfolio investments may not have any major macroeconomic impact as long as capital flows are adequate to finance current account deficit.

In the global market, Yields on U.S. Treasury debt edged higher on Tuesday after falling the previous two sessions, as oil prices stabilized from the day's low levels, but sentiment remained cautious with the overall trend in crude suggesting inflation would remain subdued. Furthermore, Crude prices found at least temporary support early after the dollar weakened and China's commodity imports came out surprisingly strong, but oversupply means prices are expected to remain low for some time.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.78% from its previous close at 7.79% on Tuesday.

The benchmark five-year interest rates were trading 2 basis points lower at 7.80% from its previous close at 7.82% on Tuesday

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