Bond yields were trading flat on Friday amid a private report stated that the Centre as well as state governments are likely to budget for higher market borrowings next fiscal even though the Union Budget may peg a lower-than-expected fiscal deficit at 5.8 per cent of GDP.
In the global market, Treasury yields fell on Thursday as investors digested a key inflation report that showed a small decline in price pressures. Furthermore, oil rose on Thursday supported by optimism over China's demand outlook and hopes that upcoming inflation data from the United States will point to a slower increase in interest rates.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.28% on Thursday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.11% from its previous close of 7.14% on Thursday.
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