Bond yields traded flat on Friday after credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has revised down India's FY22 real GDP growth forecast to 10.1 per cent, from earlier projection of 10.4 per cent. It expects the second wave to start subsiding by mid-May.
In the global market, U.S. Treasury yields fell back on news that President Joe Biden will propose a tax hike for high earners, after climbing in morning trading. Furthermore, oil prices rose on hopes of a fuel demand recovery in the United States and Europe as economic growth picks up and lockdowns ease, but worries about India's raging second wave of COVID-19 cases kept a lid on gains.
Back home, the yields on new 10-year Government Stock were trading flat with its previous close of 6.05% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.51% from its previous close of 5.52% on Thursday.
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