Bond yields traded higher on Friday despite Reserve Bank of India (RBI) has cut its projection for gross domestic product (GDP) growth for fiscal 2021-22 (FY22) to 9.5 per cent from the earlier forecast of 10.5 per cent.
In the global market yields U.S. Treasury yields, particularly in the belly of the curve, climbed on Thursday in light trading ahead of the government's May employment report. Furthermore, oil prices dropped as concerns about the patchy roll-out of anti-coronavirus vaccinations around the globe tempered optimism earlier in the week that demand for fuels was recovering from the depths of the pandemic.
Back home, the yields on new 10-year Government Stock were trading 4 basis points higher at 6.03% from its previous close of 5.99% 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.