Bond yields edged lower on Friday, on sustained demand from corporates and banks. However, gains remained capped ahead of a weekly debt sale today.
In the global market, U.S. 10-year Treasury yields rose to a near seven-year peak on Thursday, extending this week's bond market selloff, as traders and investors have not reached a consensus on whether it was time to buy or if the market was vulnerable to more selling. Furthermore, Oil prices held firm on strong demand, ongoing supply cuts led by producer cartel OPEC and looming U.S. sanctions against major crude exporter Iran.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 7.82% from its previous close of 7.88% on Thursday.
The benchmark five-year interest rates were trading 5 basis points lower at 7.78% from its previous close of 7.83% on Thursday.