Bond yields edged higher on Friday, after minutes of the nation’s Monetary Policy Committee released after market hours yesterday showed that the central bank is intent on meeting its medium-term inflation aim of 4 pct. Besides, a fresh supply of notes later in the day is also likely to weigh on bond prices.
In the global market, U.S. Treasury yields rose as investors waited on the results from the French presidential election this weekend and as rising risk appetite boosted stocks, after yields fell earlier and broke below key technical resistance. Furthermore, oil opened the last day of a choppy trading week on a cautious note over doubts that an OPEC-led production cut was having the desired effect of restoring balance to a market that has been dogged by oversupply for more than two years.
Back home, the yields on new 10 year Government Stock were trading 6 basis points higher at 6.94% from its previous close of 6.88% on Thursday.
The benchmark five-year interest rates were trading 7 basis points higher at 7.03% from its previous close of 6.96% on Thursday.