Bond yields were trading higher on Friday with private report that expects the economy to continue to show positive surprises and record up to 9 per cent growth in the next fiscal. For the current financial year too, it anticipates growth to be higher than the consensus forecast of 8.4-9.5 per cent, and printing in at around 10.5 per cent.
In the global market, U.S. Treasury yields retreated on Thursday, reversing course following three straight days of gains for the 10-year yield, after data on the labor market and ahead of a key reading on inflation. Furthermore, oil prices drifted down as traders locked in profits from a strong run-up this week, stoked by growing confidence that the rapid spread of the Omicron coronavirus variant would not hit global growth and fuel demand.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.37% from its previous close of 6.34% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.71% from its previous close of 5.70% on Thursday.