Bond yields traded lower on Thursday, as improving financial-system liquidity and the prospect of a reduction in benchmark interest rates spurred demand for debt. Meanwhile, investors continue to bet global central banks will expand stimulus to take the sting out of Britain leaving the European Union.
In the global market, U.S. benchmark and long-dated Treasury yields finished slightly higher on Wednesday on profit taking after hitting record lows during the session on global growth concerns stemming from Britain's recent vote to exit from the European Union. Furthermore, Oil prices rose on Thursday, supported by a report of another fall in U.S. crude inventories as well as a weaker dollar, although a glut of refined products and economic growth concerns continue to weigh on markets.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.37% from its previous close at 7.39% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.23% from its previous close at 7.26% on Wednesday.