Bond yields edged lower on Friday, as SBI Research's Ecowrap report that the India’s Gross Domestic Product (GDP) growth may slide to 1.1% in the current financial year (FY21), due to the impact of coronavirus (COVID-19) outbreak on the economy. The economic growth rate during FY20 is estimated to come down to 4.1% from 5% projected by several agencies before the outbreak of deadly virus, which affected more than 20 lakh persons around the world and took lives of over 1.3 lakh people.
In the global market, U.S. Treasury yields fell for a third straight session on Thursday, pressured by more data showing how the coronavirus outbreak has choked the world's largest economy, as debates mounted about reopening businesses in the United States. Furthermore, oil prices rose with Brent gaining nearly 3% after President Donald Trump laid out guidelines on reviving a U.S. economy ravaged by the coronavirus pandemic that has punched a huge hole in global demand for crude and refined products.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 6.38% from its previous close of 6.44% on Tuesday.
The benchmark five-year interest rates were trading 16 basis points lower at 5.57% from its previous close of 5.73% on Tuesday.