Long term Yields fall on lower inflation reading

By 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	82,069.26 730.83M	0.94% 764.01
KSE30	40,387.76 80.88M	1.11% 442.31
KMI30	191,376.82 77.76M	0.36% 678.77
KMIALLSHR	55,193.97 350.11M	0.22% 119.82
BKTi	35,828.25 28.42M	3.64% 1259.85
OGTi	28,446.34 6.84M	-1.02% -293.01

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	108,125.00	110,525.00 107,865.00	-2290.00 -2.07%
BRENT CRUDE	68.51	68.89 67.75	-0.29 -0.42%
RICHARDS BAY COAL MONTHLY	97.50	0.00 0.00	0.75 0.78%
ROTTERDAM COAL MONTHLY	106.00	106.00 105.85	-2.20 -2.03%
USD RBD PALM OLEIN	998.50	998.50 998.50	0.00 0.00%
CRUDE OIL - WTI	66.50	67.18 66.04	-0.50 -0.75%
SUGAR #11 WORLD	16.37	16.40 15.44	0.79 5.07%