Bond yields edged lower on Friday, as the federal government’s borrowing plan for the second half of the fiscal year was along expected lines.
In the global market, the yield spread between shorter and longer-dated U.S. Treasuries grew on Thursday in the aftermath of a tax plan that raised concerns about faster growth in the federal deficit and borrowing. Furthermore, Oil prices rose, with both Brent and U.S. crude set to chalk up another weekly gain as investors bet that efforts to cut a global glut are working and that the demand outlook is improving.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.62% from its previous close of 6.64% on Thursday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.65% from its previous close of 6.67% on Thursday.