Bond yields edged lower on Thursday as a drastic fall in economic growth has boosted speculation that the central bank may adopt a ‘dovish’ policy stance at its meeting next week.
In the global market, long-dated U.S. Treasury yields touched their lowest in more than five weeks and benchmark yields their lowest in nearly two weeks on month-end buying and U.S. housing data that fanned doubts that the Federal Reserve would raise interest rates again in 2017 beyond June. Furthermore, Oil futures rose after slumping to a three-week low the previous session, buoyed by an industry report that showed U.S. crude stockpiles had fallen more than expected.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.65% from its previous close of 6.66% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.89% from its previous close of 6.91% on Wednesday.