Bond yields traded lower on Monday after the central bank’s move to withdraw the country’s highest value currency notes could lead to an increase in banking system liquidity and improved appetite for fixed income assets.
In the global market, U.S. Treasury yields ended mostly higher on Friday after an intra-day stumble amid renewed uncertainty over a debt ceiling deal, lingering banking industry concerns, and comments by Federal Reserve Chair Jerome Powell viewed as dovish. Furthermore, Oil prices edged up on Monday on a softer dollar and supply cuts from Canada and OPEC+ producers, while investors waited to see if a pledge by the Group of Seven (G7) nations to strictly enforce price caps on Russian energy would impact exports.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.98% from its previous close of 7.00% on Friday.
The benchmark five-year interest rates were trading 6 basis points lower at 6.87% from its previous close of 6.94% on Friday.
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