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Bond yields trade higher on Friday

26 Feb 2021 Evaluate

Bond yields traded higher on Friday, on expectation that traders may trim positions tracking a consistent uptick in U.S. Treasury yields. A fresh supply of notes at the weekly debt auction may also weigh on sentiment.

In the global market, benchmark U.S. Treasury yields vaulted to their highest since the pandemic began on Thursday as the week's sell-off in bonds on rising economic expectations and inflation concerns continued, accelerated by a disappointing auction of 7-year notes at midday.  Furthermore, oil prices fell as a collapse in bond prices led to gains in the U.S. dollar and expectations grew that with oil prices back above pre-pandemic levels, more supply is likely to come back to the market.

Back home, the yields on new 10-year Government Stock were trading 5 basis points higher at 6.23% from its previous close of 6.18% on Thursday.

The benchmark five-year interest rates were trading 6 basis points higher at 5.77% from its previous close of 5.71% on Thursday.

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