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Bond yields trade lower on Monday

12 Mar 2018 Evaluate

Bond yields edged lower on Monday, on sustained demand from corporates and banks. However, gains were limited as investors remained cautious ahead of key economic data - industrial production (IIP) numbers for January and retail inflation for February - to be released later in the day.

In the global market, U.S. Treasury yields advanced on Friday after data showed the world's largest economy created far more jobs than expected in February, reinforcing expectations the Federal Reserve would raise interest rates at least three times this year. Furthermore, Oil markets climbed on the back of a drop in the number of U.S. rigs drilling for more production and as the U.S. economy continued to create jobs, which industry hopes will drive higher fuel demand.

Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.66% from its previous close of 7.68% on Friday.

The benchmark five-year interest rates were trading 1 basis point lower at 7.43% from its previous close of 7.44% on Friday.

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