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Bond yields trade lower on Wednesday

13 Sep 2023 Evaluate

Bond yields traded lower on Wednesday despite retail inflation based on the Consumer Price Index (CPI) declined to 6.83 per cent in August 2023 mainly due to softening prices of vegetables. CPI was at 7 per cent in August 2022.

In the global market, treasury yields traded in a narrow range on Tuesday, with the two-year note edging above the 5% threshold, as investors await key inflation data this week that the market believes will keep the Federal Reserve from raising interest rates next week. Furthermore, oil prices jumped about 2% to a near 10-month high on Tuesday on a tighter supply outlook and OPEC optimism over the resilience of energy demand in major economies.

Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.18% from its previous close of 7.20% on Tuesday.

The benchmark five-year interest rates were trading 5 basis points lower at 7.18% from its previous close of 7.23% on Tuesday.

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