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Bond yields trade flat on Monday

10 May 2021 Evaluate

Bond yields traded flat on Monday, amid Fitch Ratings said the shock to economic activity from the latest wave of COVID-19 pandemic will be less severe than the one in 2020, but recovery is likely to be delayed as economic activity dropped in April-May.

In the global market, U.S. Treasury yields rebounded after hitting two month lows on Friday following data that showed a much smaller than expected jobs gain in April, with yields on longer- dated debt rising for the session as investors remained confident the economy was on the road to a strong receovery. Furthermore, crude prices climbed more than 1% after major cyber attack that forced the shutdown of the critical fuel supply pipelines in the United States.    

Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.01% on Friday.

The benchmark five-year interest rates were trading 1 basis point higher at 5.54% from its previous close of 5.53% on Friday.

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