Bond yields traded lower on Friday as the minutes of the June MPC released by the central bank revealed that sounding a note of caution, RBI’s rate-setting panel member Jayanth R Varma opined that monetary policy is now dangerously close to levels at which it can inflict significant damage to the economy.
In the global market, U.S. Treasury yields rose on Thursday, as investors focused on hawkish comments from Federal Reserve Chair Jerome Powell that suggested interest rates could go higher still as the central bank grapples with stubbornly high inflation. Furthermore, Oil prices slumped on Thursday after Fed Chair Jerome Powell told Congress that further interest rate hikes are coming in the second half of the year after a pause last week.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.06% from its previous close of 7.08% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.02% from its previous close of 7.03% on Thursday.
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