Bond yields traded higher on Friday, the most since the period ended July 17, before an auction of 140 billion rupees ($2.1 billion) of government securities to be held later in the day. In the auction up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the auction of government securities.
In the global market, U.S. Treasury yields fell Thursday after minutes from the Federal Reserve's most recent meeting offered no firm indication of how soon the Fed may raise interest rates and reducing expectations of a rate hike next month. Furthermore, Oil prices resumed their downward trend in early Asian trade on Friday with the U.S. benchmark on track for its eighth weekly decline, pulled lower by weaker global stock markets and concerns over an economic slowdown in China.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.76% from its previous close at 7.74% on Thursday.
The benchmark five year yields were trading 2 basis points higher at 7.88% from its previous close of 7.86% on Thursday.