Bond yields traded higher on Friday, as traders remain on the sideline with a private report stating that the fiscal situation of the Narendra Modi government has worsened with the fiscal deficit in the first eight months of the financial year 2018-19 hitting 115% of the budget estimates.
In the global market, US government debt prices ticked lower on Thursday as equities were set to give back some of the massive gains notched in the previous session. Furthermore, Oil prices jumped as much as 3 percent on Friday to win back a chunk of the ground they lost in the previous session, but growth in US crude stockpiles and ongoing concerns about the global economy kept markets under pressure.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.30% from its previous close of 7.28% on Thursday.
The benchmark five-year interest rates were trading flat at its previous close at 8.04% on Thursday.
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