Bond yields edged higher on Thursday, as overnight gains in crude oil prices worsen the outlook for domestic inflation, even as traders awaited a fresh supply of notes tomorrow.
In the global market, U.S. Treasury yields were little changed on Wednesday as traders stuck to their view that the Federal Reserve would gradually increase interest rates in 2018 based on the minutes of the central bank's December policy meeting. Furthermore, Oil prices remained near levels last seen in late 2014/2015, with markets tightening amid tensions in Iran and due to ongoing OPEC-led production cuts.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.36% from its previous close of 7.32% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.21% from its previous close of 7.18% on Wednesday.