Bond yields edged marginally higher on Friday, as investors’ maintained cautious approach ahead of a weekly debt auction. However, losses remained capped as some support came with the report that wholesale price index based inflation eased to 0.9 percent in June from 2.17 percent in May, on account of easing manufactured products and fuel prices.
In the global market, U.S. Treasury yields rose on Thursday after falling for three straight days, tracking gains in German bond yields with solid U.S. economic data supporting their trend higher. Furthermore, Oil markets dipped, pulled down by high fuel inventories and improving industry efficiency, but were still on track for a solid weekly gain.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.47% from its previous close of 6.46% on Thursday.
The benchmark five-year interest rates were trading flat at its previous close at 6.56% on Thursday.