Bond yields traded higher on Friday, after Reserve Bank of India (RBI's) Deposits with Scheduled Commercial Banks - March 2021 data showed that bank deposits grew 11.9 per cent year-on-year during 2020-21 compared to 8.8 per cent in 2019-20 on the back of high growth in current account and savings account (CASA) deposits. The share of CASA deposits increased to 43.7 per cent in March 2021 compared to 41.7 per cent a year ago.
In the global market U.S. Treasury yields jumped on Thursday after the Federal Reserve opened the door to raising interest rates as early as next year, a potential move that was reinforced by the Bank of England's outlook on rates and a rate hike by the Norwegian central bank. Furthermore, oil prices rose for a fourth day, taking Brent towards three-year highs, as investors focused on tighter supplies amid strong appetite for riskier assets like crude and high hopes for recovery from the pandemic.
Back home, the yields on new 10-year Government Stock were trading 4 basis points higher at 6.18% from its previous close of 6.14% on Thursday.
The benchmark five-year interest rates were trading 8 basis points higher at 5.65% from its previous close of 5.57% on Thursday.