Three and four-year bond yields plunged around 30 basis points today as dealers scrambled to grab the bonds.
The weighted average yield of the 3 year bond fell 28 basis points to 10.06 %, while the 4 year bond yield fell 31 basis points to 10.07%.rn
rnThe two one and a half billion medium term bond issues attracted more than Rs 12 bn in bids.rn
rnLast week Central Bank strongly signaled its commitment to low rates by buying up most of the short-term treasury bills, leaving dealers high and dry.rn
rnDealers say the bids were not just captive buying but genuine private sector demand, spurred by the knock on effects from the events in the T endash bill market.rn