Bond yields traded lower on Thursday as investors turned optimistic ahead of an open market purchase of notes later today, while the U.S. Federal Reserve's decision to keep interest rates unchanged and a reiteration of gradual increases in future also supported sentiment.
In the global market, U.S. Treasury debt prices rallied on Wednesday, snapping a seven-day streak of losses, as the Federal Reserve left the door open for an interest rate increase in June but signalled its rate hike path still would be a very gradual one. Furthermore, Crude futures pulled back from 2016 highs early on Thursday as traders locked in profits after April's sharp rally, but analysts said falling U.S. production and strong investor appetite could push prices higher.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.44% from its previous close at 7.46% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.47% from its previous close at 7.50% on Wednesday.