Bond yields traded higher on Friday, as sentiment remain dampened with the economic research wing of SBI report stating that it is erroneous to come to a conclusion of heightened economic activity using the jump in currency in circulation (CIC).
In the global market, Treasury yields fell on Thursday after data showed that U.S. retail sales recorded their biggest drop in more than nine years in December, suggesting a slowdown in economic activity at the end of 2018. Furthermore, Oil prices rallied, with Brent crude futures hitting fresh 2019 highs amid U.S. sanctions against Venezuela and Iran and supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).
Back home, the yields on new 10 year Government Stock were trading 5 basis points higher at 7.57% from its previous close of 7.52% on Thursday.
The benchmark five-year interest rates were trading 11 basis points higher at 7.21% from its previous close of 7.10% on Thursday.