Bond yields traded higher on Friday amid Reserve Bank retained the real GDP growth projection at 9.5 per cent for 2021-22 as domestic economic activity has started normalising with the ebbing of the second wave of the virus and the phased reopening of the economy. In the June monetary policy, the RBI had lowered the growth projection for 2021-22 to 9.5 per cent from 10.5 per cent estimated earlier.
In the global market U.S. Treasury yields rose on Thursday as risk sentiment improved after a healthy jobless claims report, a day ahead of more detailed employment data. Furthermore, U.S. crude oil futures were on track for their biggest weekly decline since late October, with prices coming under pressure as top consumers impose travel restrictions amid the spread of the Delta variant of the coronavirus.
Back home, the yields on new 10-year Government Stock were trading 4 basis points higher at 6.24% from its previous close of 6.20% on Thursday.
The benchmark five-year interest rates were trading 6 basis points higher at 5.77% from its previous close of 5.71% on Thursday.