Bond yields edged lower on Wednesday after the Bank of Japan (BOJ) decided to adopt a target for long-term interest rates in an overhaul of its massive stimulus programme. The BOJ maintained the 0.1 percent negative interest rate it applies to some of the excess reserves that financial institutions park with the central bank.
In the global market, U.S. Treasuries' yields fell on Tuesday as traders bought longer-dated bonds on uncertainty over whether the Bank of Japan might decide at a two-day policy meeting to add more stimulus to boost its economy. Furthermore, Oil prices climbed, supported by a reported draw in U.S. crude inventories and by firm import data from Japan.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.04% from its previous close of 7.06% on Tuesday.
The benchmark five-year interest rates were trading flat from its previous close at 6.96% on Tuesday.