Bond yields edged higher on Friday, as traders remain concerned on report that CARE Ratings has revised India’s GDP growth forecast on account of subdued growth in the industrial sector and weakness in the agricultural sector during Q1FY20. The rating agency cut the GDP estimate downward from 6.7-6.8% earlier to 6.4-6.5% for FY20 with the underlying GVA growth of 6.3-6.4%.
In the global market, US Treasury yields were higher on Thursday following news that the United States and China had agreed to hold trade talks in October and ahead of US employment data for August and remarks from Federal Reserve Chair Jerome Powell, both on Friday. Furthermore, Oil prices edged higher, with crude benchmarks poised for multi-week gains amid a sharp drawdown in US crude inventories, while trade tensions eased after Washington and Beijing agreed to hold high-level talks next month.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.59% from its previous close of 6.57% on Thursday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.30% from its previous close of 6.28% on Thursday.