Bond yields traded flat on Friday, as SBI’s research report Ecowrap has stated that with the government's cumulative package of Rs 20 lakh crore, which is nearly 10 percent of GDP, India’s fiscal deficit is likely to be more than double to 7.9 percent in the current financial year (FY21). It had earlier estimated the fiscal deficit to be 3.5 percent of GDP this fiscal.
In the global market, Investors pushed U.S. Treasury yields lower on Thursday as they took stock of another grim jobs report and tried to gauge the success of efforts to reopen the economy in the face of the COVID-19 pandemic. Furthermore, oil prices were mixed after big gains a day earlier when the International Energy Agency predicted crude stockpiles would start to shrink in second-half 2020 after surging while the coronavirus pandemic slashed fuel demand.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 6.05% on Thursday.
The benchmark five-year interest rates were trading 5 basis points higher at 5.63% from its previous close of 5.58% on Thursday.