Bond yields edged lower on Thursday on sustained demand from corporates and banks. However, gains remained capped after US Federal Reserve holding interest rates steady in its first meeting since President Donald Trump took office.
In the global market, U.S. Treasury prices pared losses on Wednesday after the Federal Reserve kept interest rates unchanged and painted a relatively upbeat picture of the U.S. economy, without adopting a very hawkish tone. Furthermore, oil prices fell after official data showed U.S. crude and gasoline stockpiles rose sharply, although signs that OPEC and other producers are holding the line on output cuts are helping support prices.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.41% from its previous close of 6.43% on Wednesday.
The benchmark five-year interest rates were trading flat at its previous close at 6.56% on Wednesday.