Bond yields edged higher on Thursday, tracking a sharp spike in global crude oil prices that will increase inflation worries and as minutes of the US Federal Reserve’s latest meeting hinted at two more rate hikes this year.
In the global market, US Treasury yields fell on Wednesday after minutes from the Federal Reserve’s August meeting showed the central bank could slow the pace of rate increases if global trade spats begin to take a toll on the economy. Furthermore, US oil edged up to extend gains from the previous session, lifted by a decline in US commercial crude inventories, while international crude markets were weaker due to the trade dispute between the United States and China.
Back home, the yields on new 10 year Government Stock were trading 6 basis points higher at 7.87% from its previous close of 7.83% on Tuesday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.94% from its previous close of 7.89% on Tuesday.