Bond yields edged lower on Friday as the RBI said India’s current account deficit (CAD) in April-June was at $23.9 billion, or 2.8 per cent of gross domestic product (GDP), much higher than the $13.4 billion, or 1.5 per cent of GDP, in January-March 2022.
In the global market, U.S. Treasuries resumed a sell-off on Thursday as Federal Reserve officials reaffirmed the U.S. central bank's plans to tame inflation by aggressively hiking interest rates, an outlook that deepened a risk-off mood in capital markets. Furthermore, Oil prices were little changed but headed for their first weekly gain in five weeks, underpinned by a weaker U.S. dollar and the possibility that OPEC+ may agree to cut crude output when it meets on Oct. 5.
Back home, the yields on new 10 year Government Stock were trading 1 basis points lower at 7.33% from its previous close of 7.34% on Thursday.
The benchmark five-year interest rates were trading 4 basis points lower at 7.27% from its previous close of 7.31% on Thursday.