Bond yields traded higher on Friday as the overseas investors pulled the most money from the country’s debt in three months before the Federal Reserve reviews U.S. interest rates. Meanwhile, investors remained cautious ahead of IIP data to be released later in the day amid mixed global cues.
In the global market, U.S. Treasury yields rose on Thursday as stocks gained, reducing demand for safe haven assets, even after the government sold new 30-year bonds to strong demand. Furthermore, Crude oil prices dipped on Friday and were poised for a weekly fall after news that top oil exporter Saudi Arabia sees no need for a producer summit to defend prices, partly offsetting a strong rally in the previous session
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.78% from its previous close at 7.77% on Thursday.
The benchmark five year yields were trading 1 basis point higher at 7.91% from its previous close at 7.90% on Thursday.