Bond yields edged higher on Friday, ahead of a fresh supply of bonds and as a higher-than-estimated gross domestic product growth in January-March has increased prospects of monetary tightening.
In the global market, U.S. Treasury yields on the long end of the curve fell on Thursday after the United States slapped tariffs on steel and aluminum imports from the European Union, Canada and Mexico, rekindling fears of a trade war. Furthermore, U.S. crude oil lost more ground, with the market set for a second week of decline on pressure from record U.S. production and expectations of higher OPEC output.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.86% from its previous close of 7.83% on Thursday.
The benchmark five-year interest rates were trading 4 basis points higher at 7.87% from its previous close of 7.83% on Thursday.