Bond yields traded lower on Friday after the Reserve Bank said India's external debt increased by $47.1 billion to $620.7 billion in the financial year ended March 2022. Besides, government’s total liabilities rose 3.74 per cent to Rs 133.22 lakh crore in the March quarter from Rs 128.41 lakh crore in the three months ended December 2021.
In the global market, treasury yields slid for a third straight day on Thursday after soft U.S. consumer spending data and still elevated consumer prices kept concerns alive that the Federal Reserve will brake growth more than needed to curb rising inflation. Furthermore, oil prices edged up in early trade, after sinking in the previous session as OPEC+ said it would stick to its planned oil output hikes in August and investors worried about the strength of the global economy.
Back home, the yields on new 10 year Government Stock were trading 5 basis points lower at 7.40% from its previous close of 7.45% on Thursday.
The benchmark five-year interest rates were trading 4 basis points lower at 7.21% from its previous close of 7.25% on Thursday.