Bond yields traded higher on Friday after chief economic advisor K V Subramanian said inflation would likely come in at below the 6% mark in July itself but could stay at an elevated level of over 5% for some time.
In the global market U.S. Treasury yields inched higher on Thursday, but were below their peaks for the day, after a soft 7-year note auction added to the positive risk tone which persisted all day despite weaker-than-expected U.S. data. Furthermore, oil prices fell but were on track to post solid gains for the week with demand growing faster than supply, while vaccinations dampen the impact of a resurgence in coronavirus cases worldwide.
Back home, the yields on new 10-year Government Stock were trading 2 basis point higher at 6.21% from its previous close of 6.19% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.73% from its previous close of 5.72% on Thursday.