Bond yields traded lower on Friday despite Securities and Exchange Board of India (Sebi) in its latest data has showed that investment in the Indian capital markets through Participatory notes (P-notes) rose over a six-year high at Rs 1.33 lakh crore at September-end, making it the seventh consecutive monthly increase, on the back of robust macroeconomic fundamentals.
In the global market, U.S. Treasury yields fell on Thursday following the release of weaker-than-expected U.S. inflation and disposable income data, supporting market sentiment that interest rates are at, or near, their peak. Furthermore, oil prices fell by over 2% on Thursday after a rise in U.S. crude stockpiles signalled waning demand, and concerns about the economic outlook drove a broader sell-off in global equities.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.34% from its previous close of 7.36% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.34% from its previous close of 7.35% on Thursday.