Bond yields edged higher on Friday, as traders remain concerned with a report that the government might be impelled to steeply cut its direct tax collection target, with growth in this regard slumping to 3.5 per cent up to mid-October from the same period in the earlier financial year, as against the Budget target of 17.3 per cent.
In the global market, US Treasury yields edged higher on Thursday after trading lower for much of the session, as investors consolidated positions ahead of next week's Federal Reserve monetary policy meeting that is expected to result in an interest rate cut for a third time this year. Furthermore, Oil prices stepped back after three straight days of gains, hurt by renewed concerns about fuel demand in light of gloomy economic growth forecasts.
Back home, the yields on new 10 year Government Stock were trading 10 basis points higher at 6.78% from its previous close of 6.68% on Thursday.
The benchmark five-year interest rates were trading 11 basis point higher at 6.43% from its previous close of 6.34% on Thursday.