Bond yields traded steady as investors remained cautious ahead of Index of Industrial Production (IIP) data for January to be released later in the day. Meanwhile Indian sovereign bonds halted as the central bank’s debt purchases added cash to the banking system. The Reserve Bank of India bought 150 billion rupees of notes through open-market operations on Thursday.
In the global market, U.S. Treasury yields rose in choppy trading after European Central Bank President Mario Draghi suggested he does not anticipate deepening the ECB interest rate cuts announced on Thursday. Furthermore, Oil prices jumped on Friday supported by fresh investment and a strong yuan, which makes fuel cheaper for Chinese importers.
Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.63% on Thursday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.80% from its previous close at 7.78% on Thursday.
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