Bond yields traded flat, amid Reserve Bank of India (RBI) official has said that the country’s GDP is likely to contract by 8.6 percent for second quarter of current financial year (Q2FY21), which means India will enter into a recession for the first time in history in the first half of this fiscal with two successive quarters of negative growth due to the COVID-19 pandemic.
In the global market, the dollar held broad gains as investors adjusted some of their bullish expectations about a COVID-19 vaccine, tempering a recent rally in risk assets but keeping enough confidence to support the greenback against other safe-havens. Furthermore, oil prices rose in early trade, taking the week's gains to more than 12% on growing hopes that the world's major producers will hold off on a planned supply increase as soaring cases of COVID-19 dent fuel demand..
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.90% on Wednesday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.16% from its previous close of 5.17% on Wednesday.