Bond yields edged marginally lower on Friday, on sustained demand from corporates and banks. However, the gains remained capped as minutes of the rate-setting Monetary Policy Committee’s August meeting showed several members were concerned about a further rise in inflation.
In the global market, U.S. Treasury yields fell on Thursday as investors, unnerved by a deadly attack in Barcelona and speculation about a top White House economic adviser quitting, favored safe, low-yielding bonds over stocks and other risky assets. Furthermore, oil prices fell as part of a broad-based selloff across markets and despite signs that crude markets are gradually tightening.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.51% from its previous close of 6.53% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.49% from its previous close of 6.50% on Wednesday.