Bond yields traded higher on Friday, as commerce and industry ministry in its latest data has said that Foreign direct investment (FDI) in India grew 40 percent to $51.47 billion during April-December 2020-21 as against $36.77 billion in the same period of 2019-20. Besides, it said the country has attracted 22 percent higher FDI (including re-invested earnings) of $67.54 billion during the first nine months of the current fiscal as against $55.14 billion in the year ago period.
In the global market, benchmark U.S. Treasury yields jumped on Thursday, with the 10-year yield topping 1.5%, as Federal Reserve Chair Jerome Powell reiterated the central bank's view on maintaining its current ultra-accomodative policy even as inflation concerns simmer. Furthermore, oil prices rose, adding to big gains overnight after OPEC and its allies agreed to not increase supply in April as they await a more solid recovery in demand from the coronavirus pandemic.
Back home, the yields on new 10-year Government Stock were trading 2 basis points higher at 6.23% from its previous close of 6.21% on Thursday.
The benchmark five-year interest rates were trading 6 basis points higher at 5.85% from its previous close of 5.79% on Thursday.