Bond yields traded flat on Friday after credit rating agency ICRA in its latest report has said with decline in number of fresh COVID-19 cases and easing of restrictions, the country's gross domestic product (GDP) will grow at 8.5 percent in FY2021-22. It expects the gross value added (GVA) at basic prices (at constant 2011-12 prices) to grow at 7.3 per cent in FY2022.
In the global market yields U.S. bond yields fell to three month lows and a broad gauge of Asian shares rose as investors saw enough one-off factors in U.S. consumer price data to back the Federal Reserve's conviction that rising inflation will be transitory. Furthermore, oil prices slipped, but were set for their third weekly rise on expectations for a recovery in fuel demand in Europe, China and the United States as rising vaccination rates lead to an easing of pandemic curbs.
Back home, the yields on new 10-year Government Stock were trading flat with its previous close of 6.01% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.50% from its previous close of 5.49% on Thursday.