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Bond yields trade flat on Thursday

22 Oct 2020 Evaluate

Bond yields traded flat before the central bank’s first-ever open market operation in state debt today.

In the global market Benchmark U.S. Treasury yields rose to four-month highs on Wednesday on hopes that U.S. lawmakers will reach a deal to pass new fiscal stimulus in the near term. Furthermore, oil prices dropped in early trade, adding to heavy losses overnight, after a build in U.S. gasoline inventories pointed to a deteriorating outlook for fuel demand as coronavirus cases soar in North America and Europe.

Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.91% on Wednesday.

The benchmark five-year interest rates were trading 2 basis points higher at 5.21% from its previous close of 5.19% on Wednesday.