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	47,752.38 218.48M	-1.21% -582.54
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Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	108,070.00	108,415.00 108,010.00	1630.00 1.53%
BRENT CRUDE	64.72	65.15 64.06	-0.20 -0.31%
RICHARDS BAY COAL MONTHLY	80.50	0.00 0.00	-1.50 -1.83%
ROTTERDAM COAL MONTHLY	93.00	93.00 93.00	0.10 0.11%
USD RBD PALM OLEIN	1,082.50	1,082.50 1,082.50	0.00 0.00%
CRUDE OIL - WTI	60.23	60.30 60.20	-0.34 -0.56%
SUGAR #11 WORLD	14.25	14.42 14.07	-0.17 -1.18%