Bond yields trade lower on Wednesday, amid bets the nation’s Monetary Policy Committee will relax its stance in view of slowing growth and inflation when it announces its decision later today.
In the global market, U.S. long-dated Treasury yields fell to seven-month lows on Tuesday, as nervous investors favored the safety of bonds ahead of Thursday's general election in Britain, the European Central Bank's policy meeting, and former FBI Director James Comey's testimony before a Senate panel. Furthermore, Oil prices dipped, with Brent crude futures failing to find support at $50 per barrel, as global fuel markets remained oversupplied, although rising tension in the Middle East and falling U.S. inventories lent some support.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.63% from its previous close of 6.64% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.85% from its previous close of 6.86% on Tuesday.