Bond yields edged tad lower as rate cut bets re-emerged following the core inflation data and comments from the central bank chief, Duvvuri Subbarao of the budget being ‘responsible’ and ‘measured’. Core wholesale price inflation rose an estimated 3.8% in February from last year, down from a 4.1% annualised rise in January.
On the global front, US Treasuries were trading flat in Asian trade on Friday, stabilizing after having dipped a little the previous day as solid jobless claims data brightened the US economic outlook further. The jobless claims dropped 10,000 to a seasonally adjusted 332,000 last week, as compared to consensus forecast of a rise to 350,000. Meanwhile, Brent futures rose above $109 a barrel on Friday as strong US jobs data fuelled hopes of a better outlook for demand in the world's top oil consumer, while simmering concerns over supply from the Middle East added support.
Back home, the yields on 10-year 8.79% - 2021 bonds were trading 1 basis point lower at 7.85% from its previous close of 7.86% on Thursday.
The benchmark five-year interest rate swaps were trading 2 basis points lower at 7.52% from its previous close of 7.54% on Thursday.
