Bond yields edged lower on Friday as the FICCI’s quarterly survey showed that the Indian economy is expected to expand 7% in fiscal 2022/23, slower than a previous estimate of 7.4% and the central bank's 7.2% projection. The survey said the war in Ukraine is likely to keep inflation high and dent consumer demand.
In the global market, U.S. Treasury yields fell on Thursday, with the benchmark 10-year note below 2.9%, weighed by soft economic data and after the first interest rate hike in 11 years by the European Central Bank turned investors' focus toward an economic slowdown.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.40% from its previous close of 7.44% on Thursday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.16% from its previous close of 7.19% on Thursday.