Bond yields edged higher on Friday, as investors turned cautious ahead of a fresh supply of debt. Besides, relentless selling by state-run banks, also weighed on prices. However, losses remained capped with the government finalizing Goods and Services Tax rates for substantial items, clearing a major hurdle towards July 1 rollout of the country's biggest indirect reform to create one unified market.
In the global market, U.S. Treasury yields rose from one-month lows on Thursday as stocks recovered from Wednesday’s dramatic drop, reducing demand for safe-haven bonds. Furthermore, Oil futures rose in early trading on growing optimism that big producing countries will extend output cuts to curb a persistent glut in crude, with key benchmarks heading for a second week of gains.
Back home, the yields on new 10 year Government Stock were trading 2 basis point higher at 6.86% from its previous close of 6.84% on Thursday.
The benchmark five-year interest rates were trading flat at its previous close at 7.00% on Thursday.