Bond yields traded lower on Friday, as traders took some support with the Reserve Bank of India’s (RBI) data showing that bank credit rose by 14.19% to Rs 96.45 lakh crore, while deposits grew 10.60% to Rs 125.30 lakh crore in the first fortnight ended on April 12.
In the global market, Afternoon trade saw Treasury yields rise ahead of US gross domestic product report, which is expected to show growth of 2 percent in the first quarter, a strong outcome after a volatile start to the year in financial markets. Furthermore, oil prices dipped on hopes that producer club OPEC will soon raise output to make up for a decline in exports from Iran following a tightening of sanctions on Tehran by the United States.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.42% from its previous close of 7.45% on Thursday.
The benchmark five-year interest rates were trading 4 basis points lower at 7.36% from its previous close of 7.40% on Thursday.