Bond yields traded higher on Friday, after RBI data showed that Bank credit grew by 6 per cent to Rs 109.31 lakh crore and deposits increased by 9.76 per cent to Rs 154.51 lakh crore in the fortnight ended July 2, 2021.
In the global market U.S. Treasury yields fell to one-week lows on Thursday as Federal Reserve Chairman Jerome Powell testified before Congress for the second day that rising inflation is likely to be transitory and that the U.S. central bank would continue to support the economy. Furthermore, oil prices fell a third day as supply concerns continued to haunt the market, with OPEC likely to add more barrels amid expectations that demand is returning as more countries recover from the pandemic.
Back home, the yields on new 10-year Government Stock were trading 2 basis points higher at 6.13% from its previous close of 6.11% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 5.68% from its previous close of 5.69% on Thursday.