Bond yields traded lower on Friday despite Reserve Bank of India (RBI) in its latest data has showed that bank credit grew by 5.66 per cent to Rs 103.44 lakh crore, while deposits increased by 10.55 per cent to Rs 143.02 lakh crore in the fortnight ended October 9. In the fortnight ended October 11, 2019, bank credit had stood at Rs 97.89 lakh crore and deposits at Rs 129.38 lakh crore.
In the global market, Benchmark U.S. Treasury yields rose to four-month highs on Thursday and the yield curve steepened on hopes that U.S. lawmakers are close to striking a deal on new fiscal stimulus. Furthermore, oil prices held on to gains made on the previous session, after Russian President Vladimir Putin indicated he would be prepared to extend record supply cuts in the face of the COVID-19 pandemic.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 5.85% from its previous close of 5.91% on Thursday.
The benchmark five-year interest rates were trading 8 basis points lower at 5.13% from its previous close of 5.21% on Thursday.