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Bond yields edge lower on Friday

02 Feb 2024 Evaluate

Bond yields edged lower on Friday despite government has targeted a fiscal deficit of 5.1 percent of the GDP for 2024-25. In absolute terms, the fiscal deficit for 2024-25 is seen at Rs 16.85 lakh crore, with the number for 2023-24 lowered to Rs 17.35 lakh crore from the budget estimate of Rs 17.87 lakh crore.

In the global market, U.S. Treasury yields fell to near their lowest levels in 2024 Thursday as higher than expected jobless claims suggested that the labor market was cooling. Furthermore, Oil prices edged higher on Thursday, boosted by the U.S. Federal Reserve signalling a possible start to interest rate cuts in coming months. 

Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.03% from its previous close of 7.06% on Thursday.

The benchmark five-year interest rates were trading 3 basis points lower at 6.96% from its previous close of 6.99% on Thursday.