Bonds yields traded lower on last trading session as investors escaped to the safe heaven assets like bonds due to drastic fall in local equity market, after British referendum indicated that UK will leave EU. Investors got support with Arun Jaitley’s statement that the government was prepared for the short and medium-term consequences of Brexit.
In the global market, U.S. Treasury prices rose in late U.S. trading on Thursday, as early official results showed Britons supporting their nation to exit the European Union had a narrow lead, renewing safe-haven bids for lower-risk government debt. Furthermore, oil prices slumped on Friday after voting ended in a British referendum on whether to stay in the European Union, with early returns showing the 'Leave' camp holding the lead.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.47% from its previous close at 7.48% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.43% from its previous close at 7.42% on Thursday.