Bond yields traded higher on Friday, as SBI's Research report has said after clocking record collections in December 2020 at Rs 1.15 lakh crore, the January 2021 GST collection is expected to be in the range of Rs 1.21-1.23 lakh crore and may still have an upside.
In the global market, U.S. Treasury yields rallied on Thursday, in tandem with gains on Wall Street, after fourth-quarter growth data for the world's largest economy was not as weak as initially feared, while initial weekly jobless claims were below forecast. Furthermore, oil prices were mixed as a pending supply cut by Saudi Arabia and lower U.S. oil stocks helped counter risks of slowing fuel demand due to stalled vaccine rollouts and contagious new coronavirus strains.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 5.94% from its previous close of 5.93% on Thursday.
The benchmark five-year interest rates were trading flat with previous close of 5.29% on Thursday.