Bond yields edged lower on Friday despite State Bank of India (SBI) has pencilled in lower current account deficit at 3 per cent for this fiscal as against the minimum consensus of 3.5 per cent, citing rising software exports, remittances and a likely $5-billion jump in forex reserves via swap deals.
In the global market, U.S. Treasury yields tumbled across the board on Thursday after the October consumer price index report, a key inflation measure, came in weaker than expected, signaling that price increases have possibly peaked. Furthermore, oil prices slid settled higher on Thursday, ending lower for the first time this week, as tamer-than-expected U.S. inflation data offset worries that renewed COVID-19 curbs in China would hurt fuel demand.
Back home, the yields on new 10 year Government Stock were trading 6 basis points lower at 7.28% from its previous close of 7.34% on Thursday.
The benchmark five-year interest rates were trading 11 basis points lower at 7.16% from its previous close of 7.27% on Thursday.