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Bond yields trade lower on Wednesday

24 May 2023 Evaluate

Bond yields traded lower on Wednesday with a private report that foreign direct investment (FDI) inflows into the country fell 16% to $71 billion (on a gross basis) during 2022-23 on the back of a weak global economic situation, marking the first decline in a decade.

In the global market, Yields on one-month U.S. T-bills jumped to a record high in London trade on Tuesday as concerns about the United States hitting its debt ceiling continued to weigh on financial markets. Furthermore, oil price trades higher on Tuesday continuing its recovery from the poor open at the start of the week, spurred on by strong US macroeconomic data coupled with optimism regarding the outcome of debt-ceiling talks.

Back home, the yields on new 10-year Government Stock were trading 3 basis points lower at 6.98% from its previous close of 7.01% on Tuesday.

The benchmark five-year interest rates were trading flat with its previous close of 6.91% on Tuesday.

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