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Bond yields trade higher on Friday

31 Aug 2018 Evaluate

Bond yields traded higher on Friday, ahead of a fresh supply of notes via auction today, while rising crude oil prices and expectation of further depreciation in the rupee will further weigh on investors’ sentiments.

In the global market, US Treasury yields hit session lows on Thursday afternoon in a flight-to-quality sparked by a report that President Donald Trump planned to impose tariffs on $200 billion worth of Chinese goods next week, and after Argentina's central bank raised interest rates to 60 percent, roiling emerging markets. Furthermore, Oil prices dipped amid concerns the trade war between the United States and China could intensify, although looming U.S. sanctions against Iran's oil exports prevented markets from falling further.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.95% from its previous close of 7.93% on Thursday.

The benchmark five-year interest rates were trading 4 basis points higher at 8.02% from its previous close of 7.98% on Thursday.

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