Bond yields edged higher on Friday, on account of lower demand from corporates and banks. However, losses remained capped as some solace came after the finance ministry welcomed the Monetary Policy Committee’s (MPC) projection of higher GDP growth and lower inflation in the current fiscal. The MPC’s growth projection of 7.4 percent is in line with the Economic Survey.
In the global market, U.S. Treasury yields rose to one-week highs on Thursday as investors piled back into equities as reduced fears of a trade war drove up the appetite for risk, and ahead of Friday’s closely watched employment report for March. Furthermore, Oil prices fell on Friday along with equities as U.S. President Trump's threat of new tariffs on China reignited fears of a trade war between the world's two biggest economies.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.16% from its previous close of 7.13% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.10% from its previous close of 7.09% on Thursday.