Bond yields traded higher on Friday as the Federal Reserve’s interest-rate increase gave uncertainty in bond market. For the first time in a decade, US Federal Reserve has hiked interest rates by 0.25 per cent, signaling a recovery in the US economy.
In the global market, Prices on longer-dated U.S. Treasuries extended their rebound, with significant bull-flattening, as investors digested a rate increase by the Federal Reserve and became more skeptical of the central bank's ability to raise rates as much as it would like in 2016. Furthermore, Crude futures fell in Asian trading on Friday as fresh signs of inventory building and the Federal Reserve rate hike this week kept prices under pressure amid a global glut of oil that shows no sign of abating.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.72% from its previous close at 7.71% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.75% from its previous close at 7.74% on Thursday.