Bond yields edged tad lower on Friday, owing to favorable macro-economic data. India’s factory output grew at a robust 7.1% in February while retail inflation decelerated for the fourth consecutive month to 4.28% in March, leading to expectation that the Indian economy may be on a sustained recovery path.
In the global market, U.S. Treasury yields climbed on Thursday as risk appetite improved and geopolitical tensions eased after President Donald Trump said a possible attack on Syria may not be imminent, contrary to what he signaled on Wednesday. Furthermore, oil prices edged lower but are set for their biggest weekly gains since last July following a jump to a more than three-year high earlier in the week on tensions over Syria and shrinking global oil inventories.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.46% from its previous close of 7.47% on Thursday.
The benchmark five-year interest rates were trading flat at its previous close at 7.36% on Thursday.