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Bond yields trade flat on Friday

09 Sep 2016 Evaluate

Bond yields traded flat on Friday as investors remained cautious ahead of industrial production (IIP) data due to be released today.

In the global market, U.S. Treasury yields rose across the board on Thursday, in line with European bonds, after European Central Bank President Mario Draghi left the door open for additional monetary policy easing but gave no indication that more stimulus was actually coming. Furthermore, Oil prices pulled back on profit-taking after settling more than 4 percent higher a day earlier after government data confirmed a surprisingly huge drawdown in U.S. crude inventories.

Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.04% on Thursday.

The benchmark five-year interest rates were trading 3 basis points lower at 6.92% from its previous close of 6.95% on Thursday.