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Bond yields trade flat on Wednesday

23 Dec 2020 Evaluate

Bond yields traded flat on Wednesday ahead of the central bank’s open market purchase of state debt later today.

In the global market U.S. Treasury yields fell on Tuesday as investors weighed the likelihood of new lockdowns stemming from a more infectious variant of the coronavirus in the United Kingdom against the impact of U.S. fiscal stimulus. Furthermore, oil fell after industry data showed U.S. crude oil stocks rose last week, defying expectations for a decline, and U.S. President Donald Trump rattled markets by threatening not to sign a long-awaited COVID-19 relief bill.

Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.95% on Tuesday.

The benchmark five-year interest rates were trading 1 basis point higher at 5.10% from its previous close of 5.09% on Tuesday.