Bond yields edged higher on Thursday after the U.S. Federal Reserve increased the policy interest rate and hinted at faster-than-anticipated rate hikes in 2017, which may trigger capital outflows.
In the global market, shorter-dated U.S. Treasury yields surged on Wednesday, with those on two-year notes climbing to their highest in more than seven years after the Federal Reserve raised interest rates for the first time in a year and flagged more rate increases in 2017. Furthermore, oil prices dropped as a hike in U.S. interest rates drove money away from commodities and into U.S. bonds and the dollar, but a tighter fuel market looms in 2017 due to planned production cuts led by OPEC and Russia.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 6.45% from its previous close of 6.41% on Wednesday.
The benchmark five-year interest rates were trading 4 basis points higher at 6.42% from its previous close of 6.38% on Wednesday.