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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ALLSHR	113,014.88 818.77M	0.34% 387.19
KSE30	58,343.51 138.42M	1.51% 865.27
KMI30	270,148.09 181.64M	1.39% 3704.91
KMIALLSHR	73,012.90 523.25M	0.58% 420.25
BKTi	53,510.85 31.11M	-0.08% -41.88
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Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	88,995.00	90,135.00 88,850.00	-450.00 -0.50%
BRENT CRUDE	64.93	65.05 64.29	0.87 1.36%
RICHARDS BAY COAL MONTHLY	86.75	0.00 0.00	-3.10 -3.45%
ROTTERDAM COAL MONTHLY	98.50	0.00 0.00	-0.30 -0.30%
USD RBD PALM OLEIN	1,071.50	1,071.50 1,071.50	0.00 0.00%
CRUDE OIL - WTI	60.21	60.34 59.52	0.85 1.43%
SUGAR #11 WORLD	14.82	14.98 14.82	-0.14 -0.94%