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Bond yields trade higher on Friday

21 Jun 2019 Evaluate

Bond yields traded higher on Friday, tracking an overnight rise in crude oil prices.

In the global market, US benchmark 10-year Treasury yields on Thursday dropped below 2% for the first time in more than 2-1/2 years, while other maturities fell to multiyear lows as well, a day after the Federal Reserve flagged interest rate cuts as early as next month. Furthermore, Oil prices rose, with Brent crude heading for its first weekly gain in five weeks on tensions in the Middle East after Iran shot down a US military drone and on hopes for a drop in U.S. interest rates that may stimulate global growth.

Back home, the yields on new 10 year Government Stock were trading 9 basis points higher at 6.87% from its previous close of 6.78% on Thursday.

The benchmark five-year interest rates were trading 8 basis points higher at 6.71% from its previous close of 6.63% on Thursday.