Bond yields traded higher on Friday, traders remained caution with credit ratings agency Moody’s statement that liquidity constraints faced by some non-bank financial institutions (NBFIs) will likely tighten overall credit supply and slow India’s economic growth rate to just above 7% for the fiscal 2019 and 2020.
In the global market, US Treasury yields were narrowly mixed on Thursday, generally trading in line with US equities, with investors also focused on the European Central Bank's lower growth and inflation forecasts for next year as well as a warning of economic risks to the region. Furthermore, Oil prices eased after rising over 2 percent the day before, but were supported by hopes the market will tighten more quickly than some had expected in the wake of supply cuts from major producers.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.45% from its previous close of 7.41% on Thursday.
The benchmark five-year interest rates were trading flat at its previous close at 7.34% on Thursday.