Bond yields traded higher on Wednesday, tracking a rise in crude oil prices and as the local currency may continue to depreciate against the dollar.
In the global market, US yield curve flattened on Tuesday as a hawkish afternoon speech from Federal Reserve Chair Jerome Powell lifted the short end of the curve while the long end remained muted as investors sought safety from the Italian bond selloff. Furthermore, Oil prices were firm on expectations of a tighter market once US sanctions start targeting Iran's petroleum industry from next month, although a strong dollar and rising US crude supply curbed gains.
Back home, the yields on new 10 year Government Stock were trading 9 basis points higher at 8.08% from its previous close of 7.99% on Monday.
The benchmark five-year interest rates were trading 9 basis points higher at 8.13% from its previous close of 8.04% on Monday.
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