Bond yields traded higher on Friday amid rising odds of an interest-rate increase by the US Federal Reserve this year. Investors overlooked the World Bank statement retaining India's growth forecast at 7.5 percent in 2015-16, followed by a further acceleration to 7.8 percent in 2016-17 and 7.9 percent in 2017-18, saying it will continue to grow.
In the global market, U.S. Treasuries prices fell on Thursday with benchmark yields jumping to their highest in a month as the U.S. economy expanded in the third quarter on solid consumer spending, reinforcing chances the Federal Reserve may hike interest rates in December. Furthermore, Crude futures dropped in early Asian trading on Friday after the release of a report showing that U.S. economic growth had slowed sharply, reinforcing concerns about sluggish demand in a world awash with oil.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.64% from its previous close at 7.62% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.69% from its previous close at 7.68% on Thursday.