Bond yields traded lower on Friday after the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 5.25 per cent, maintaining its neutral policy stance amid rising global uncertainties, geopolitical tensions in West Asia and concerns over inflationary pressures.
In the global market, US Treasury yields fell on Thursday as investors await more key data on the U.S. employment picture, while renewed hopes for a Middle East ceasefire sent energy costs lower. Furthermore, Oil prices were little changed on Friday following sharp declines in the previous session, with prospects dimming for a near-term end to the U.S.-Israeli war with Iran after the Hezbollah militia rejected a new ceasefire in Lebanon.
Back home, the yields on new 10 year Government Stock were trading 04 basis points lower at 6.95% from its previous close of 6.99% on Thursday.
The benchmark five-year interest rates were trading 15 basis points lower at 6.64% from its previous close of 6.79% on Thursday.