Bond yields edged lower on Friday, on sustained demand from corporates and banks. Some solace also came with report that net direct tax collection grew by 14.8 per cent to Rs. 1.42 lakh crore at the end of first quarter on account of surge in advance tax payments. As per the finance ministry the net direct tax collection represents 14.5 per cent of the total Budget Estimates of direct taxes of Rs 9.8 lakh crore for 2017-18.
In the global market, U.S. Treasury yields rose on Thursday, with benchmark yields touching nearly eight-week highs, on the prospect of hawkish global central bank policy and concern that rising oil prices could spur inflationary pressures. Furthermore, oil prices fell by more than 1 percent, with U.S. crude futures dipping below $45 per barrel as news of a rise in U.S. production added to earlier reports that OPEC output was also on the rise.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.53% from its previous close of 6.54% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.77% from its previous close of 6.76% on Thursday.