Bond yields were trading higher on Friday after Ministry of Commerce and Industry in its latest report has said that India registered the highest ever annual FDI Inflow of $ 81.97 billion (provisional) in the financial year 2020-21. The Ministry of Commerce and Industry noted that FDI inflow in the last 7 financial years (2014-21) is $ 440.27 billion, which is nearly 58% of the total FDI inflow in last 21 financial years (2000-21: $ 763.83 billion).
In the global market, the U.S. Treasury curve steepened as note yields tumbled on Thursday, a day after the Federal Reserve doubled the pace of its monthly bond-buying tapering and flagged three interest rate increases next year. Furthermore, oil prices dipped, putting the market on track to end the week roughly unchanged, as surging cases of the Omicron coronavirus variant raised fears new curbs may hit fuel demand, while a weaker dollar supported commodity markets broadly.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 6.41% from its previous close of 6.37% on Thursday.
The benchmark five-year interest rates were trading 3 basis points higher at 5.76% from its previous close of 5.73% on Thursday.