Bond yields edged lower on Friday, on sustained demand from corporates and banks. Some support also came with Niti Aayog Vice Chairman Rajiv Kumar’s statement that India will emerge as a model for the rest of the world once it completes economic, political and social transitions.
In the global market, Treasury prices rose, pulling yields higher Thursday after bond-buyers stepped back into the market to arrest the previous day’s selloff that came after Federal Reserve minutes signaled more interest-rate hikes in the offing. Furthermore, oil prices edged up, supported by lower U.S. crude inventories, but gains were capped by a surge in U.S. exports that dragged net imports in the world's biggest fuel consumer to a record low.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.71% from its previous close of 7.75% on Thursday.
The benchmark five-year interest rates were trading 4 basis points lower at 7.48% from its previous close of 7.52% on Thursday.
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