Bond yields traded higher on Friday after the Reserve Bank of India (RBI) announced larger-than-expected rate cut. RBI reduced repo rate by 50 bps to 5.50%. For the full year FY26, the RBI has projected headline inflation at 3.70%, lower than the 4% forecast made in April.
In the global market, U.S. Treasury yields ticked higher on Thursday as investors awaited the upcoming nonfarm payrolls report for more clarity on the state of the U.S. economy. Furthermore, Oil prices fell slightly in Asian trade on Friday as traders remained on edge over slowing growth and weakening demand, although increased military action between Russia and Ukraine limited losses.
Back home, the yields on new 10 year Government Stock were trading 4 basis point higher at 6.28% from its previous close of 6.24% on Thursday.
The benchmark five-year interest rates were trading 10 basis points lower at 5.80% from its previous close of 5.90% on Thursday.
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