Bond yields were trading higher on Friday as India Ratings and Research (Ind-Ra) said that higher tax and non-tax revenue collections this fiscal are expected to more than offset the shortfall in disinvestment revenue, leading to the fiscal deficit coming in at 6.6 per cent of GDP in FY22, or 20 basis points lower than the budgeted target.
In global front, benchmark 10-year U.S. Treasury yields dipped from one-month highs on Thursday, with no major catalysts to drive market direction and many traders out before the New Year’s holiday.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.48% from its previous close of 6.46% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 5.88% from its previous close of 5.87% on Thursday.
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