Bond yields edged lower on Friday, as credit rating agency, Moody's Investors Service in its latest report has said that an upgrade of its India's rating at Baa2 negative is unlikely in the near term. It also added that the negative outlook reflects increasing risks that economic growth will remain significantly lower than in the past.
In the global market, U.S. Treasury yields fell from three-week highs on Thursday as investors adjusted to the prospect of an increase in longer-dated debt supply. Furthermore, oil prices rose as more countries began easing lockdowns set in place to stop the coronavirus spreading, giving hope that demand for fuels will pick up after the economic devastation caused by the pandemic.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 5.99% from its previous close of 6.02% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.54% from its previous close of 5.55% on Wednesday.