Bond yields edged lower on Wednesday, on sustained demand from corporates and banks. However, the gains remained capped as investors remained cautious ahead of the Monetary Policy Committee’s interest rate decision due later in the day.
In the global market, U.S. Treasury debt yields fell on Tuesday in volatile trading as the market remained cautious two days after a mass shooting in Las Vegas, with investors also continuing to weigh the prospects of another interest rate hike this year. Furthermore, Oil prices eased over caution that a price rally that lasted for most of the third quarter would not extend through the last three months of the year.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.63% from its previous close of 6.65% on Tuesday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.62% from its previous close of 6.63% on Tuesday.