Bond yields traded lower on Tuesday, as Moody’s Analytics said the Omicron variant of COVID-19 adds new uncertainties to the global economic outlook but much will depend on its speed of transmission, hospitalisation and death rates, and also the effectiveness of vaccines.
In the global market, U.S. Treasury yields mostly rose and the curve steepened on Monday amid a waning flight-to-safety bid that had been triggered by the detection of a new coronavirus variant last week, leading to the market's biggest rally since the onset of the pandemic. Furthermore, oil prices climbed, extending a rebound from last week's plunge on growing expectations major producers would pause plans to add crude supply in January amid uncertainty over the severity of the Omicron coronavirus variant.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.32% from its previous close of 6.33% on Monday.
The benchmark five-year interest rates were trading 3 basis points lower at 5.70% from its previous close of 5.73% on Monday.
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