Bond yields traded higher on Friday as RBI data showed that country's foreign exchange reserves surged to $576.98 billion as on March 31, 2021 from $544.69 billion at September-end last year. Foreign currency assets (FCA), a major component of the overall reserves, increased to $536.693 billion as at March-end 2021 from $502.162 billion.
In the global market U.S. Treasury yields were lower on Thursday, with longer-dated yields falling after four straight days of gains even as a reading on inflation came in higher than expected, while weekly initial jobless claims fell more than anticipated. Furthermore, oil prices fell after dropping about 3% a day earlier as coronavirus cases remained high in major oil consumer India and as a key fuel pipeline in the United States resumed operations after being shut due to a cyber attack.
Back home, the yields on new 10-year Government Stock were trading 1 basis point higher at 6.02% from its previous close of 6.01% on Thursday.
The benchmark five-year interest rates were trading 4 basis points higher at 5.59% from its previous close of 5.55% on Thursday.