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Bond yields trade higher on Thursday

10 Jan 2019 Evaluate

Bond yields edged higher on Thursday, as crude oil prices extended gains, hurting the outlook for domestic inflation.

In the global market, Dovish Federal Reserve speakers and a strong 10-year note auction helped bring Treasury yields down from two-week highs on Wednesday, after optimism that the United States would reach a trade deal with China had earlier boosted risk appetite. Furthermore, Oil prices fell on swelling US supply, although the mood in global markets was increasingly confident amid hopes the United States and China may soon end trade disputes that have undermined global economic growth.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.49% from its previous close of 7.47% on Wednesday.

The benchmark five-year interest rates were trading flat at its previous close at 7.32% on Wednesday.

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