Bond yields edged higher on Wednesday, as investors awaited fresh global and local cues.
In the global market, the U.S. Treasury yield curve flattened to its lowest in a decade on Tuesday as investors awaited minutes from the Federal Reserve’s last meeting, with no major economic releases due this week and trading subdued before the U.S. Thanksgiving holiday. Furthermore, oil prices firmed after a reported fall in U.S. crude inventories and on expectations that an OPEC-led production cut aimed at tightening the market will be extended beyond March 2018.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 6.94% from its previous close of 6.90% on Tuesday.
The benchmark five-year interest rates were trading 5 basis points higher at 6.86% from its previous close of 6.81% on Tuesday.