Bond yields edged lower on Thursday, on sustained demand from corporates and banks. However, gains were limited as investors remained concerned after the U.S. Federal Reserve held interest rates steady late yesterday but expressed confidence that a recent rise in inflation to near target would be sustained, hinting at a rate hike in June.
In the global market, U.S. Treasury yields for most maturities fell on Wednesday as a quarterly refunding program that aims to finance the country's massive fiscal deficit came in short of expectations, reducing the pressure on prices caused by the increase in debt supply. Furthermore, Oil prices dipped, weighed down by swelling U.S. crude inventories and record weekly U.S. production which is countering efforts by producer cartel OPEC to cut supplies and prop up prices.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.72% from its previous close of 7.73% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.78% from its previous close of 7.77% on Wednesday.
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