Bond yields edged higher on Friday, as trader were cautious ahead of a fresh supply of papers, with the rupee’s expected decline against the dollar also expected to weigh on investors’ sentiments.
In the global market, US Treasury yields eased on Thursday, a day after 10-year notes hit a 10-week high, as investors sought the safety of government debt with trade tensions between the United States and China escalating once again. Furthermore, Oil prices edged lower after strong gains the previous day, easing on persisent supply concerns as Russia increased production in July and Saudi Arabia cut the price of crude for its Asian customers.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.76% from its previous close of 7.72% on Thursday.
The benchmark five-year interest rates were trading 5 basis points higher at 7.87% from its previous close of 7.82% on Thursday.