Bond yields edged higher on Friday, as investors remained concerned with the current account deficit soaring to $ 3.4 billion, or 0.6 per cent of gross domestic product (GDP), in the fourth quarter of fiscal 2017, from $ 0.3 billion a year ago. The widening of the CAD on a year-on-year basis was primarily on account of a higher trade deficit which stood at $ 29.7 billion.
In the global market, most U.S. Treasury yields edged higher on Thursday after stronger-than-expected U.S. economic data and as traders weighed hawkish Federal Reserve and Bank of England signals, but remained depressed as they did not fully reverse their biggest plunge in a month Wednesday. Furthermore, oil prices dipped and were not far off six-months lows as an ongoing supply overhang weighed on markets despite an OPEC-led effort to cut production and prop up prices.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.49% from its previous close of 6.48% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.69% from its previous close of 6.68% on Thursday.