Bond yields traded higher on Friday as investors remained cautious after Reserve Bank of India has issued guidelines to trade in currency futures and said that primary dealers or bond houses should have a minimum capital base of Rs 250 crore to participate in the exchange traded currency futures market.
In the global markets, U.S. Treasury debt yields fell for a fourth straight session on Thursday, a day after the Federal Reserve lowered its expectations for interest rate hikes this year and expressed concerns about the state of global financial markets. Furthermore, oil futures touched new highs for 2016 on Friday, adding to strong gains the previous session as optimism grew that major producers would strike a deal to freeze output, while a more benign interest rate environment also supported prices.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.52% from its previous close at 7.51% on Thursday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.71% from its previous close at 7.69% on Thursday.