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Bond yields trade higher on Friday

23 Jul 2021 Evaluate

Bond yields traded higher on Friday amid private report that employees in India will see bigger pay rises next fiscal year as firms expect to emerge from lockdowns and the supply of applicants lags demand.

In the global market Yields on U.S. Treasuries eased on Thursday after the auction of $16 billion in 10-year TIPS was bid at a record low, while the latest jobless claims report reinforced expectations the Federal Reserve's policy stance will remain dovish. Furthermore, oil prices trimmed overnight gains but were poised to end the week largely steady after rebounding from a sharp drop, underpinned by expectations supply will remain tight as demand recovers.

Back home, the yields on new 10-year Government Stock were trading 1 basis point higher at 6.14% from its previous close of 6.13% on Thursday.

The benchmark five-year interest rates were trading flat with its previous close of 5.68% on Thursday.

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