Bond yields trade lower on Friday

Bond yields edged lower on Friday after the central bank announced a long-awaited open market purchase of notes. However, gains remained capped ahead of a fresh debt auction later on October 22, 2016.

In the global market, Longer-dated U.S. Treasury yields fell on Thursday after European Central Bank President Mario Draghi said there was no discussion at the ECB's latest policy meeting on possible changes to its 1 trillion-plus euro bond purchase program. Furthermore, oil prices fell, pulled down by a stronger dollar, but traders said there were signs that physical fuel markets were tightening after two years of ballooning oversupply.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.84% from its previous close of 6.85% on Thursday. 
The benchmark five-year interest rates were trading 2 basis points lower at 6.71% from its previous close of 6.73% on Thursday.