Bond yields edged lower on Friday as traders remained cautious amid report by Acuite Ratings stated that India's economic activity is expected to decline and witness a lower growth print in FY24 on the back of a buoyancy in the services sector, moderation in inflation and the consistency in public sector capital expenditure.
In the global market, U.S. Treasury yields fell on Thursday after soft U.S. economic data and as the market consolidated before the Federal Reserve's May meeting, when the U.S. central bank is expected to raise interest rates for the final time this hiking cycle. Furthermore, Oil prices eased on Friday, extending losses from the two previous days and heading for a weekly decline, as softening U.S. economic data and a rise in U.S. gasoline inventories raised concerns about a recession and slower global oil demand.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.19% from its previous close of 7.22% on Thursday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.01% from its previous close of 7.04% on Thursday.