Bond yields traded flat on Friday, as National Statistical Office (NSO) in its first advanced estimates of national income has stated that gross domestic product (GDP) of India is likely to contract by a record 7.7% during 2020-21 as the COVID-19 pandemic severely hit the key manufacturing and services segments.
In the global market, U.S. Treasury yields on the longer end of the curve continued their march higher on Thursday as the market factored in a Democrat-controlled U.S. government and the potential for further stimulus spending. Furthermore, oil prices edged higher, hovering near 11-month highs hit the previous day, as Saudi Arabia's pledge to make voluntary cuts to its output continued to buoy the mood in the market though worries over slower fuel demand capped gains.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 5.89% on Thursday.
The benchmark five-year interest rates were trading 3 basis points higher at 5.10% from its previous close of 5.07% on Thursday.