Bond yields edged lower on Friday, on sustained demand from corporates and banks. Some support also came with credit rating agency Fitch’s report, which ahead of the first advance estimates for GDP growth for 2017-18, has expressed optimism about India’s medium-term economic prospects and said it would outstrip China’s growth.
In the global market, U.S. government debt yields climbed on Thursday after ADP data showed the private sector added 250,000 jobs in December, well above expectations. Furthermore, oil prices fell on Friday, dropping away from highs last seen in 2015, as soaring U.S. production undermined a 10-percent rally from lows hit in December that was driven by tightening supply and political tensions in OPEC member Iran.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.33% from its previous close of 7.34% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.21% from its previous close of 7.20% on Thursday.
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