Bond yields traded lower on Thursday, as a private report said that even though the overall outlook for corporates have improved on the back of faster than expected recovery, and the same is likely to gain further traction in H2 but the rising commodity prices and logistics cost pose headwinds to their profitability.
In the global market, U.S. Treasuries rallied on Wednesday as the recent backup in yields reached levels that drew buyers back to the securities, and after the Treasury sold 20-year bonds to tepid but not terrible demand. Furthermore, U.S. oil was under pressure, adding to an overnight plunge on a Reuters report that the United States was asking major oil consumers like China and Japan to consider a coordinated release of oil reserves to lower prices.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.34% from its previous close of 6.36% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.75% from its previous close of 5.73% on Wednesday.
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