Bond yields have come off day’s high point on hopes that that tight cash conditions will lead to liquidity injection from the government. However, the yields were trading lower in earlier deals, after Retail inflation slowed down to a 2-year low, expecting that the central bank will stick to its guidance of no further hikes if price pressures continue to ease
On the global front, US Treasury debt prices dropped for a second straight session on Wednesday after the US House of Representatives passed a measure on the debt ceiling and the new Federal Reserve chair vowed to maintain the bank's current strategy of reducing asset purchases at a gradual pace. Meanwhile, brent crude slipped towards $108 a barrel on Thursday, falling for the first time in three sessions on worries of a drop in consumption as refineries enter the maintenance season.
Back home, the yields on new 10 year Government Stock 2023 came off day’s high off its session high of 8.82% as compared to its previous close of 8.81%. The yields were trading at 8.79% in early morning deals.
The benchmark five-year interest rate swaps were trading 3 basis points lower at 8.40% from its previous close of 8.43% on Wednesday.
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