Bond yields traded lower on Friday, as traders took some support with a report that Reserve Bank of India’s (RBI) decision to lower benchmark interest rate will boost investment and buttress consumer spending amid ‘growth concerns’, provided banks transmit the reduction.
In the global market, US Treasury yields slipped modestly on Thursday, below 1-1/2-week highs, as traders awaited a possible breakthrough in the latest round of trade negotiations between China and the United States. Furthermore, oil prices fell, with Brent slipping away from the $70 mark after briefly rising above that level in the previous session, hurt by supply concerns and worries about progress in US-China trade talks.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.33% from its previous close of 7.35% on Wednesday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.01% from its previous close of 6.99% on Wednesday.