Bond yields are trading lower on the back of a sharp fall in their US counterparts after the Federal Reserve said it would tilt its balance sheet by selling $400 billion of short-term Treasury bonds in order to buy the same amount of longer-term US government debt.
On the global front, long-dated US Treasuries soared in price and benchmark 10-year note yields fell to their lowest in more than 60 years on Wednesday after the Federal Reserve said it would launch a new $400 billion bond purchase program. Meanwhile, Brent crude futures shed more than $1 on concern that measures announced by the Fed may not be enough to jump-start an economy the bank said faces significant downside risks.
The yields on 10-year benchmark 7.80% - 2021 bonds were trading at 8.31%, down 2 basis points from its close on Wednesday.
The benchmark five-year interest rate swaps were trading at 6.86% from 6.89% on Wednesday.
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