Bond yields traded flat on Friday, as traders remained cautious with a report that in the first eight months of FY 2018-19, India's fiscal deficit target has overshot by 15 per cent, largely due to a revenue shortfall rather than front-loading of expenditure.
In the global market, US Treasury prices rose on Thursday as stocks weakened in choppy trading, but pared price gains after a soft 30-year bond auction and as Federal Reserve Chairman Jerome Powell said the US central bank will 'substantially' reduce the size of its balance sheet. Furthermore, Oil prices slipped as concerns over economic growth were rekindled after talks fell short of offering concrete steps to end the Sino-US trade conflict, although OPEC-led production cuts bolstered sentiment in crude markets.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.48% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.32% from its previous close of 7.33% on Thursday.
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