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Bond yields trade lower on Friday

08 Jun 2018 Evaluate

Bond yields edged lower on Friday, on sustained demand from corporates and banks. However, gains remained capped as investors remained cautious ahead of a fresh supply of bonds today.

In the global market, U.S. Treasury yields fell on Thursday in a volatile session, reversing the prior day's sell-off, as safe-haven demand rose on tensions between the United States and its major trade partners ahead of the Group of Seven summit. Furthermore, Oil prices rose, driven up as Venezuela struggles to meet its supply obligations and by ongoing voluntary output cuts led by producer cartel OPEC.

Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 7.93% from its previous close of 7.99% on Thursday.  

The benchmark five-year interest rates were trading 5 basis points lower at 7.96% from its previous close of 8.01% on Thursday.