Bond yields edged lower, as India’s merchandise exports shrank by 60.28% in April 2020 as compared to same period of last year, mainly due to the ongoing global slowdown, which got aggravated due to the current Covid-19 crisis. However, trade deficit, gap between imports and exports, narrowed to $6.76 billion in April 2020 from $15.33 billion a year ago.
In the global market, U.S. Treasury yields were slightly higher on Friday as investors looked for signs that public health steps have readied the economy to reopen. Furthermore, oil prices climbed by more than $1 a barrel to their highest in more than a month, supported by ongoing output cuts and signs of gradual recovery in fuel demand as more countries ease curbs imposed to stop the coronavirus pandemic spreading.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.05% from its previous close of 6.08% on Friday.
The benchmark five-year interest rates were trading flat with its previous close of 5.59% on Friday.