Bond yields trade lower on Wednesday

Bond yields traded lower on Wednesday as the underlying sentiment remains positive after the central bank announced a fresh round of open market purchase of notes, while sounding optimistic about meeting the inflation target for March 2017.

In the global market, U.S. Treasury prices rose on Tuesday after a weak report on U.S. productivity and a reverse auction in which the Bank of England failed to meet its long-dated bond purchasing target boosted the appetite for U.S. government debt. Furthermore, Oil prices were stable, with a global supply overhang weighing on markets while talk of a potential producer meeting to discuss propping up prices lent crude some support despite being met with scepticism by analysts.

Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.08% from its previous close at 7.12% on Tuesday.

The benchmark five-year interest rates were trading 3 basis points lower at 7.01% from its previous close at 7.04% on Tuesday.