Bond yields edged higher on Thursday, as the U.S. Federal Reserve signaled one more rate hike by the end of the year after keeping interest rates unchanged as expected at this week’s policy review.
In the global market, benchmark U.S. Treasury yields jumped to their highest levels in six weeks on Wednesday after the Federal Reserve’s statement from its policy meeting was interpreted as keeping a December interest rate hike on the table. Furthermore, Oil markets dipped, weighed down by rising U.S. crude inventories and production as well as a stronger dollar, which potentially hampers fuel consumption in countries that use other currencies at home.
Back home, the yields on new 10 year Government Stock were trading 6 basis points higher at 6.64% from its previous close of 6.58% on Wednesday.
The benchmark five-year interest rates were trading 5 basis points higher at 6.59% from its previous close of 6.54% on Wednesday.