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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Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	70,805.00	70,910.00 69,755.00	445.00 0.63%
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RICHARDS BAY COAL MONTHLY	99.40	0.00 0.00	-11.80 -10.61%
ROTTERDAM COAL MONTHLY	123.30	123.30 123.00	2.10 1.73%
USD RBD PALM OLEIN	1,083.50	1,083.50 1,083.50	0.00 0.00%
CRUDE OIL - WTI	93.65	94.80 92.47	-1.90 -1.99%
SUGAR #11 WORLD	15.42	15.49 14.76	0.62 4.19%