Bond yields were trading higher on Friday after rating agency Crisil in its latest report ‘India Outlook, Fiscal 2023′ has said that Indian economy is likely to grow by 7.8 per cent in 2022-23, mainly driven by the government’s drive to push infrastructure spending and likely increase in private capital expenditure.
In global front, the benchmark U.S. 10-year Treasury yield rose on Thursday and topped 2% for the first time in two weeks after U.S. inflation data confirmed rapidly rising prices, locking in expectations that the Federal Reserve will raise interest rates next week, while the European Central Bank took a hawkish turn. Furthermore, oil prices clawed back some losses but were on track for their biggest weekly drops since November after see-sawing on fears of escalating bans on Russian oil versus efforts to bring more supply to market from other major producers.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 6.83% from its previous close of 6.80% on Thursday.
The benchmark five-year interest rates were trading 2 basis points higher at 6.15% from its previous close of 6.13% on Thursday.