Bond yields traded flat on Friday as investors remained cautious ahead of policy meetings from the US Federal Reserve next week. However, diminished chances of a U.S. rate increase next week will likely spur demand for local debt.
In the global market, U.S. Treasury yield curve surged to its steepest levels in 2-1/2 months on Thursday after U.S. retail sales fell more than expected in August, further reducing the odds that the Federal Reserve will raise interest rates when it meets next week. Furthermore, oil prices fell on worries that U.S. rig counts would continue to rise and that returning Libyan and Nigerian exports would stoke a global supply glut.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.06% on Thursday.
The benchmark five-year interest rates were trading flat at its previous close at 6.95% on Thursday.