Bond yields edged lower on Thursday, as the U.S. Federal Reserve did not provide a timeline on unwinding its balance sheet while keeping the policy rate unchanged as expected.
In the global market, U.S. Treasury prices gained after the Federal Reserve indicated that it is likely to begin paring its balance sheet in the coming months and struck a slightly dovish tone on inflation. Furthermore, Oil prices dipped after three days of gains, but were sitting just below 8-week highs on hopes that a steeper-than-expected decline in U.S. crude oil inventories will reduce a global oversupply.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.42% from its previous close of 6.44% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points lower at 6.51% from its previous close of 6.54% on Wednesday.