Bond yields edged lower on Thursday, tracking a fall in U.S. Treasury yields after the Federal Reserve hinted at a cautious, gradualist approach to future rate increases.
In the global market, U.S. Treasury yields fell on Wednesday on investor relief after the Federal Reserve signaled a gradual approach on raising interest rates and winding down of its massive $4.5 trillion worth bond holdings. Furthermore, oil prices rose by one percent ahead of an OPEC meeting that is expected to extend output cuts into 2018, adding at least nine months to an initial six-month cut in the first half of this year.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.79% from its previous close of 6.80% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.97% from its previous close of 6.99% on Wednesday.