Bond yields traded lower on Wednesday, after the central bank announced a higher-than-expected open market purchase of notes scheduled for the next few weeks, while a consistent fall in crude oil prices also aided investor sentiment.
In the global market, US Treasury prices gained on Tuesday a day before the Federal Reserve’s highly anticipated interest rate decision from its two-day meeting is announced. Furthermore, US oil prices rose to claw back part of their more than 5 percent losses from the previous session, with worries about oversupply and a slowing global economy keeping markets under pressure.
Back home, the yields on new 10 year Government Stock were trading 9 basis points lower at 7.26% from its previous close of 7.35% on Tuesday.
The benchmark five-year interest rates were trading 11 basis points lower at 7.23% from its previous close of 7.34% on Tuesday.