Long term Yields fall on lower inflation reading

MG News | March 02, 2020 at 01:31 PM GMT+05:00

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March 2, 2020 (MLN): Bond yields, which had been falling since last week, fell further as the decline in CPI numbers exceeded market expectations.

Yield for 3-year bond fell by 15 bps to 11.80%, 5-Yr Bond yield declined by 20 bps to settle at 11.05% and the 10-Yr bond yield dropped by 5 bps to 11%, exhibiting a flat yield curve as the spread between short term and long term bonds narrows.

The impact of lower inflation readings can also be seen in the equity market as KSE-100 has rebounded and is currently trading at 39,023 level, up by 1036 points [1:12 pm].

Moreover, the decline in the inflation numbers will fuel the market expectations for an early cut in the policy rate.

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KSE30	47,678.47 206.79M	-0.08% -35.92
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Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	116,845.00	117,295.00 116,115.00	1020.00 0.88%
BRENT CRUDE	67.72	68.01 67.50	-0.23 -0.34%
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ROTTERDAM COAL MONTHLY	93.50	93.50 93.50	0.15 0.16%
USD RBD PALM OLEIN	1,106.50	1,106.50 1,106.50	0.00 0.00%
CRUDE OIL - WTI	63.46	63.82 63.24	-0.59 -0.92%
SUGAR #11 WORLD	16.23	16.59 16.23	-0.33 -1.99%