Bond yields edged lower on Friday, despite rating agency ICRA reported that it expects further deterioration in the growth of India's GDP to 4.7% in Q2 of FY20, due to weakening momentum in industry. ICRA also forecast the country's gross value added (GVA) at basic prices in year-on-year (YoY) basis to 4.5% in the quarter ending September of FY20.
In the global market, US Treasury yields rose on Thursday after falling for three straight sessions, bolstered by more positive news on US-China trade negotiations and the unwinding of most of this week's safe-haven demand. Furthermore, Oil prices were toppled from their highest in nearly two months by doubts over future demand for crude as uncertainty continues to shroud a potential US-China trade deal, and along with it the health of the global economy.
Back home, the yields on new 10 year Government Stock were trading 2 basis point lower at 6.49% from its previous close of 6.51% on Thursday.
The benchmark five-year interest rates were trading 7 basis points higher at 6.30% from its previous close of 6.23% on Thursday.