Bond yields traded lower on Friday despite Ministry of Finance in its latest report has said that provisional Direct Tax collections for the Financial Year 2020-21 show growth of almost 5%, as net collections are at Rs. 9.45 lakh crore.
In the global market, U.S. Treasury yields fell on Thursday, pressured by fresh dovish comments from Federal Reserve Chair Jerome Powell and weaker-than-expected initial jobless claims that highlighted the economy's bumpy recovery from the pandemic. Furthermore, oil prices edged up in early Asian trade, supported by a weaker dollar, as investors weighed rising supplies and the impact on fuel demand from the COVID-19 pandemic.
Back home, the yields on new 10-year Government Stock were trading 1 basis point lower at 6.02% from its previous close of 6.03% on Thursday.
The benchmark five-year interest rates were trading 2 basis points higher at 5.58% from its previous close of 5.56% on Thursday.