Bond yields traded flat on Friday, as investors remained cautious ahead of a weekly auction of notes, which may see a robust demand amid bets the Monetary Policy Committee’s lowering of inflation projections will lead to a rate cut in coming months.
In the global market, U.S. Treasury yields rose on Thursday as investors looked past the testimony of former Federal Bureau of Investigation chief James Comey, who made no new revelation about the agency's Russian probe, to focus on the Federal Reserve's widely expected interest rate hike next week. Furthermore, Oil prices continued to slide, adding to sharp declines from earlier this week as evidence mounted that a fuel supply overhang continued despite an ongoing effort led by OPEC to tighten the market by holding back production.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 6.53% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.71% from its previous close of 6.72% on Thursday.