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Bond yields trade higher on Monday

22 Feb 2021 Evaluate

Bond yields traded higher on Monday, on bearish sentiment, as lack of support from the central bank last week led to concerns over excess debt supply.

In the global market, benchmark U.S. Treasury yields on the longer end of the curve rose to new one-year highs on Friday as Congress was poised to act on a massive fiscal stimulus package, while the yield on 30-year inflation-protected securities (TIPS) turned positive for the first time since June. Furthermore, oil prices rose as the slow return of U.S. crude output that was cut by frigid conditions raised concerns about supply just as demand is coming back from the depths of the coronavirus pandemic.

Back home, the yields on new 10 year Government Stock were trading 7 basis points higher at 6.20% from its previous close of 6.13% on Thursday.

The benchmark five-year interest rates were trading 7 basis points higher at 5.76% from its previous close of 5.69% on Thursday.

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