Bond yields edged higher on Friday, as the central bank reduced the GDP growth outlook for 2019-20 to 6.1 per cent from 6.9 per cent in the previous bi-monthly MPC meeting.
In the global market, US bonds rallied for the sixth straight session on Thursday, leaving the two-year Treasury yield at its lowest since September 2017, as signs of a slowdown in US manufacturing and services fanned recession fears. Furthermore, Oil futures edged higher but were on track for a large weekly loss on fears that slower global economic growth will hurt fuel demand, while Saudi Arabia said it has fully restored oil output after recent attacks.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.64% from its previous close of 6.61% on Thursday.
The benchmark five-year interest rates were trading 10 basis point higher at 6.42% from its previous close of 6.32% on Thursday.