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Bond yields trade flat on Tuesday

05 Jan 2021 Evaluate

Bond yields traded flat on Tuesday, ahead of a fresh supply of state debt.

In the global market U.S. Treasury yields backpedaled from earlier gains on Monday as stock indexes tumbled on nervousness over an election this week that will determine control of the U.S. Senate, while traders pushed inflation expectations over the next 10 years to their highest average since 2018. Furthermore, oil prices were little changed after OPEC and allied producers, including Russia, continued deadlocked talks on February output while fuel demand concerns lingered on amid new COVID-19 lockdowns.

Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.85% on Monday.

The benchmark five-year interest rates were trading 1 basis point higher at 5.04% from its previous close of 5.03% on Monday.