Bond yields edged higher on Friday, as the Reserve Bank of India’s report on the liquidity framework raised uncertainty over the quantum and pace of open market bond purchases in the rest of the financial year.
In the global market, US Treasury yields dropped on Thursday as political risks escalated after a congressional panel released a whistleblower complaint that accused President Donald Trump of pressing a foreign government to investigate a potential rival at next year’s presidential election. Furthermore, Oil prices fell, erasing more of the gains realised after the Sept. 14 attacks on Saudi Arabian oil facilities, as the rapid return of production capacity from the world’s top exporter squashed risk premiums.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.73% from its previous close of 6.71% on Thursday.
The benchmark five-year interest rates were trading 2 basis point higher at 6.52% from its previous close of 6.50% on Thursday.