Bond yields edged lower on Thursday on sustained demand from corporates and banks. However, gains were limited after the minutes of the Monetary Policy Committee’s June meeting reiterated the panel’s commitment to maintain inflation at the target of 4 percent.
In the global market, U.S. Treasury yields rebounded from sharp falls in the previous session, as expectations of further U.S. interest rate increases diverted the market's attention from Washington's trade conflict with China. Oil prices fell as Iran signalled it could be won over to a small rise in OPEC crude output, potentially paving the way for the producer cartel to agree a supply increase during a meeting on Friday.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 7.77% from its previous close of 7.83% on Wednesday.
The benchmark five-year interest rates were trading 5 basis points lower at 7.83% from its previous close of 7.88% on Wednesday.