Bond yields traded flat on Friday, as Reserve Bank of India (RBI) will transfer a surplus of Rs 99,122 crore to the government for the nine-month accounting period ended March 31. The transfer will help the government's finances as the country battles a furious second coronavirus wave that has seen daily infections and deaths rise to a record level.
In the global market yields on nominal U.S. Treasury debt and inflation-linked securities fell on Thursday after factory activity in the U.S. mid-Atlantic region slowed in May from a record pace, casting doubt on how fast the economy can continue to roar. Furthermore, oil prices edged up, taking a breather after three days of losses as investors braced for the return of Iranian crude supplies after officials said Iran and world powers made progress on talks to revive a 2015 nuclear deal.
Back home, the yields on new 10-year Government Stock were trading flat with its previous close of 5.96% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.53% from its previous close of 5.54% on Thursday.