Bond yields edged higher on Tuesday after Japan's central bank unexpectedly tweaked its bond yield controls - a move that will allow long-term interest rates to rise more. While the Bank of Japan kept broad policy settings unchanged it widened the allowable band for long-term yields to 50 basis points either side of that, from 25 basis points previously.
In the global market, Treasury yields rose on Monday as investors continued to assess the outlook for the economy and monetary policy, after last week’s hawkish comments from the U.S. Federal Reserve. Furthermore, Oil prices rose on Monday, as optimism around China relaxing its COVID-19 restrictions outweighed fears of a global recession that would weigh on energy demand.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.31% from its previous close of 7.29% on Monday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.20% from its previous close of 7.17% on Monday.
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