Bond yields trade lower on Friday as investors got support after the Reserve Bank of India (RBI) announced a $1.75 billion bond purchase and said it would not allow debt issued by state governments as part of a bailout scheme for power companies to hit markets.
In the global market, US Treasury yields fell on Thursday as investors remained cautious on the outlook for global growth, with yields also undergoing a sharp, if brief, drop after the government postponed its seven-year note auction. Furthermore, Crude oil prices dipped on Friday as reports of a meeting by oil producers to freeze output failed to convince traders that enough effort was being made to rein in ballooning global oversupply.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.82% from its previous close at 7.86% on Thursday.
The benchmark five-year interest rates were trading 8 basis points lower at 8.03% from its previous close at 8.11% on Thursday.
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