Bond yields traded lower on Friday after India's central bank left its key interest rates unchanged as widely expected as inflation remains elevated. The Monetary Policy Committee, led by Governor Shaktikanta Das, voted unanimously to hold the policy repo rate at 4.00 percent. The reverse repo rate was retained at 3.35 percent.
In the global market, U.S. Treasury yields drifted lower on Thursday as the market looked ahead to the November employment report to cap a week of rate surges and retreats, seeking clues from the data on where the coronavirus-battered economy is headed. Furthermore, oil prices rose, heading for a fifth week of gains, after major producers agreed to continue to restrain production to cope with coronavirus-hit demand but the compromise fell short of expectations.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 5.89% from its previous close of 5.93% on Thursday.
The benchmark five-year interest rates were trading 6 basis points lower at 5.06% from its previous close of 5.12% on Thursday.