Bond yields trade flat on Friday as investors remained cautious ahead of the announcement of the central bank that it would hold an open market purchase of sovereign papers on Monday. Based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct purchase of Government securities under Open Market Operations for an aggregate amount of Rs 100 billion on June 20, 2016.
In the global market, US benchmark Treasury yields fell to their lowest in four years on Thursday after the Bank of Japan's decision not to add stimulus, following the U.S. Federal Reserve's announcement on Wednesday it would keep interest rates steady. Furthermore, Crude oil prices rose for the first time in seven days on Friday as markets took a breather from concerns about the impact of Britain's possible exit from the European Union.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.50% on Thursday.
The benchmark five-year interest rates were trading flat from its previous close at 7.40% on Thursday.
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