Bond yields traded lower on Friday, as traders took encouragement from Union Minister’s statement that with phenomenal changes in social and economic sector reforms, India will become a five-trillion-dollar economy in seven years from the present 2.6 trillion dollars.
In the global market, US Treasury yields fell on Thursday on safety buying as stocks dropped and as investors saw recent weakness in bonds driven by heavy corporate issuance as an opportunity to add positions at higher yields. Furthermore, Oil prices rose after US crude inventories fell to their lowest levels since February 2015.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 8.03% from its previous close of 8.06% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 8.11% from its previous close of 8.12% on Thursday.