Bond yields traded lower on Friday, as rating agency-- Icra Ratings said Although the GDP has ‘reverted to pre-COVID levels in Q3 and Q4 FY21, uncertainty related to the near-term outlook has risen considerably in the recent weeks, following the spate of new COVID-19 infections, which have necessitated localised restrictions’.
In the global market, Treasury yields jumped on Thursday after the Treasury Department saw tepid interest for an auction of seven-year notes for the second month in a row, though yields came off their highs as quarter-end rebalancing was seen as boosting demand for bonds. Furthermore, oil prices bounced back from a plunge a day earlier on concerns that a large container ship that ran aground in the Suez Canal may block the vital shipping lane for weeks, squeezing supply.
Back home, the yields on new 10-year Government Stock were trading 1 basis point lower at 6.12% from its previous close of 6.13% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.63% from its previous close of 5.64% on Thursday.
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