Bond yields traded lower on Friday , as RBI said that real gross domestic product (GDP) growth in 2020-21 is expected to be negative at (-) 9.5 per cent, with risks tilted to the downside: (-) 9.8 per cent in Q2:2020-21; (-) 5.6 per cent in Q3; and 0.5 per cent in Q4. Real GDP growth for Q1:2021-22 is placed at 20.6 per cent.
In the global market, U.S. Treasury yields retreated on Thursday, with those on long-dated debt falling from four-month peaks hit earlier this week, amid persistent uncertainty about the stimulus talks on coronavirus aid. Furthermore, oil prices eased a few cents early in trading in a breather at the end of a week of big gains propelled by a strike in Norway that raised the prospect of supply from the major producer being slashed by up to 25%.
Back home, the yields on new 10 year Government Stock were trading 9 basis points lower at 5.92% from its previous close of 6.01% on Thursday.
The benchmark five-year interest rates were trading 9 basis points lower at 5.17% from its previous close of 5.26% on Thursday.