Bond yields traded lower on Friday as investors got support with the report of Economic Affairs Secretary Shaktikanta Das’ statement that the India’s economic growth is robust despite turmoil on global financial markets. Meanwhile, investors remained cautious ahead of Consumer Price Index (CPI) and Index of Industrial Production (IIP) data scheduled to be released later in the day.
In the global market, U.S. Treasury yields plunged on Thursday as worries over global growth and the effectiveness of central bank policy sparked demand for safe-haven assets and as global equity markets dropped sharply. Furthermore, Crude oil prices jumped on Friday after comments by an OPEC energy minister sparked hopes of a coordinated production cut, yet analysts said such a move remained unlikely and that oversupply would persist.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.71% its previous close at 7.72% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.66% from its previous close at 7.65% on Thursday.