Bond yields traded lower on Wednesday after private report stated that Asia’s factory activity lost momentum in August as a resurgence in coronavirus cases disrupted supply chains across the region, raising concerns faltering manufacturing will add to economic woes caused by slumping consumption.
In the global market yields, month-end effects roiled U.S. Treasury market trading on Tuesday, leaving yields higher and the curve steeper despite waves of buying. Furthermore, oil prices were stable ahead of an OPEC+ meeting, at which major producers will decide whether to go ahead with their plan to add supply while COVID-19 cases soar in Asia and U.S. refiners assess flood damage in the wake of Hurricane Ida.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.20% from its previous close of 6.21% on Tuesday.
The benchmark five-year interest rates were trading 4 basis point lower at 5.61% from its previous close of 5.65% on Tuesday.