Bond yields edged lower on Thursday after IMF's Gita Gopinath said that the global economy is facing a unique situation due to unprecedented level of high inflation and that is causing tension between monetary and fiscal policies.
In the global market, U.S. 10-year Treasury yields fell to a four-month low on Wednesday as data showed U.S. retail sales declined more than expected in December, while the yen was weaker against the dollar in the wake of the Bank of Japan's decision to maintain ultra-low interest rates. Furthermore, Oil prices rose on Wednesday to their highest since early December on optimism that the lifting of China's strict COVID-19 curbs will lead to a fuel demand recovery in the world's top oil importer.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.29% from its previous close of 7.32% on Wednesday.
The benchmark five-year interest rates were trading 6 basis points lower at 7.09% from its previous close of 7.15% on Wednesday.
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