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Bond yields trade flat on Tuesday

25 Feb 2020 Evaluate

Bond yields traded flat on Tuesday, ahead of fresh supply of state debt today, while traders may look to book profits after a sharp rally yesterday.

In the global market, U.S. Treasury yields fell on Monday to their lowest levels since 2016 as investors sought safety in government bonds amid fears the coronavirus epidemic could do more economic damage than predicted. Furthermore, oil rose as investors snapped up bargains after crude benchmarks dropped almost 4% in the previous session, but fears that the spreading coronavirus could wreak far greater economic damage than initially thought capped gains.

Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 6.36% on Monday.

The benchmark five-year interest rates were trading 1 basis point higher at 5.94% from its previous close of 5.93% on Monday.