Bond yields trade lower on Thursday, as the Monetary Policy Committee's June meeting minutes showed one of the six members of the panel had favoured a sharp rate reduction, boosting expectations a rate cut is in the offing in coming months.
In the global market, The U.S. Treasury yield curve flattened to almost 10-year lows on Wednesday as investors evaluated the impact of hawkish Federal Reserve policy on the economy even as inflation measures are deteriorating. Furthermore, Oil prices rose after U.S. crude and gasoline stockpiles fell, but worries over whether OPEC-led output cuts would be able to rein in a three-year glut continued to drag.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.42% from its previous close of 6.43% on Wednesday.
The benchmark five-year interest rates were trading flat at its previous close at 6.68% on Wednesday.