Bond yields trade lower on Thursday, tracking a sharp fall in U.S. Treasury yields, as slower-than-expected price gains in the world’s largest economy raised doubts about future rate increases by the Federal Reserve, after a widely-expected tightening yesterday.
In the global market, Long-dated U.S. Treasury yields tumbled to their lowest since early November on Wednesday after surprisingly weak data on inflation and retail sales overshadowed an interest rate hike by the Federal Reserve. Furthermore, Oil prices wallowed near their lowest levels in seven months, hurt by high global inventories and doubts over OPEC's ability to implement production cuts.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.45% from its previous close of 6.47% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.68% from its previous close of 6.69% on Wednesday.