The benchmark 10-year FR0087 mid-tenor Government Bond (SUN) recorded a drop in yield of up to 8.5 bps, or the deepest drop in yield compared to other benchmark tenors. Attractive yields that surpass FR0088, make market players actively transact SUN benchmarks to replace the FR0082 series. On the other hand, the yield on the 10-year US Treasury (UST) at the weekend returned to the level of 1.71% or the highest level since January 2020. Investors are also wary of the Fed’s decision to allow inflation to rise higher than the conventional target of 2%. This decision is in order to achieve the target of US full employment opening.
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