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Bond yields trade flat on Thursday

09 Jul 2020 Evaluate

Bond yields traded flat on Thursday, as investors await another special open market operation by the central bank.

In the global market, the U.S. sold $29 billion worth of 10-year notes for the lowest high yield on record on Wednesday, indicating strong demand for the safe-haven securities despite a flood of new issuance to fund economic stimulus in response to the coronavirus pandemic. Furthermore, oil prices drifted lower as concerns about renewed COVID-19 lockdowns in the United States outweighed signs of a recovery in U.S. gasoline demand.

Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.77% on Wednesday.

The benchmark five-year interest rates were trading 2 basis points lower at 4.95% from its previous close of 4.97% on Wednesday.

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