Bond yields edged higher on Thursday, on account of lower demand from corporates and banks. Some concern also came with private report stating that the trade deficit has ballooned to $88 billion between April and October, up 60 percent from the comparable period a year ago due to weak exports and a sharp rise in imports.
In the global market, U.S. Treasury prices gained slightly after the minutes from the Federal Reserve’s latest meeting on Wednesday affirmed market expectations that it will hike rates in December, with trading volumes subdued before Thursday’s Thanksgiving holiday. Furthermore, U.S. oil prices remained near two-year highs as the shutdown of the Keystone pipeline and a drawdown in fuel inventories pointed to a tightening market, despite rising output.
Back home, the yields on new 10 year Government Stock were trading 5 basis points higher at 7.01% from its previous close of 6.96% on Wednesday.
The benchmark five-year interest rates were trading 4 basis points higher at 6.91% from its previous close of 6.87% on Wednesday.
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