Bond yields edged lower on Friday, with a private report that the Reserve Bank of India (RBI) may cut repo rate up to 50 bps in 2020 after the Federal Open Market Committee (FOMC) cut rate by 50bps in last meeting. Besides, Governor Das has said that we are ready for a response should the situation warrant.
In the global market, U.S. Treasury prices rallied on Thursday as fears about the spreading coronavirus left market fundamentals in the dust and the benchmark Treasury yield sank to a record low. Furthermore, oil slid as worries about demand for fuel being sapped by the global coronavirus outbreak were heightened by concern over non-OPEC crude producers not yet having agreed to cut output further to support prices.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 6.17% from its previous close of 6.23% on Thursday.
The benchmark five-year interest rates were trading 5 basis points lower at 5.60% from its previous close of 5.65% on Thursday.