Bond yields edged lower on Friday, on sustained demand from corporates and banks. However, gains were limited with report that India’s trade deficit for February 2018 was estimated at $11,979.21 million, 25.8% higher than the $9,521.73-million deficit reported during February 2017.
In the global market, the Treasury bond yield curve continued to flatten on Thursday as the surging spread between Libor and the overnight indexed swap rate pressured the short end of the curve, lifting the two-year yield to a decade high. Furthermore, Oil prices crept higher after the International Energy Agency said global crude demand would accelerate this year, but warned supply is growing at a faster pace.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.63% from its previous close of 7.64% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.38% from its previous close of 7.39% on Thursday.