Bond yields were trading lower on Friday despite Moody’s Investors Service upgraded its financial year 2022-2023 (FY23) growth forecast for the Indian economy to 8.4 per cent from the earlier estimated 7.9 per cent as the country moves to normalcy, post the removal Covid-19 restrictions.
In global front, Investors piled into U.S. government debt on Thursday, pushing Treasury yields sharply lower after Russia invaded Ukraine, but early declines later narrowed as investors assessed the assault's impact on the economy and capital markets. Furthermore, oil prices soared nearly $2 per barrel as Russia's invasion of Ukraine continued to inflame global supply concerns as markets brace for the impact of trade sanctions on major crude exporter Russia.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.74% from its previous close of 6.75% on Thursday.
The benchmark five-year interest rates were trading 2 basis points lower at 6.02% from its previous close of 6.04% on Thursday.