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Bond yields trade flat on Friday

24 Aug 2018 Evaluate

Bond yields edged flat on Friday, ahead of a fresh supply of notes, while a beaten-down rupee and elevated crude oil prices will also weigh on investors’ appetite.

In the global market, US Treasuries were little changed on Thursday ahead of a speech by Federal Reserve Chairman Jerome Powell on Friday, after minutes from the US central bank's most recent meeting showed that further interest rate hikes are likely soon. Furthermore, oil prices rose on expectations that U.S. sanctions on Iran will cut significant volumes of crude from the market towards the end of the year, but trading was muted due to the unresolved trade dispute between Washington and Beijing.

Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.88% on Thursday. 

The benchmark five-year interest rates were trading 2 basis points lower at 7.96% from its previous close of 7.94% on Thursday.

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