Bond yields traded higher on Friday after Fitch Ratings in its latest report has revised the outlook on India's sovereign rating to Stable from Negative as downside risks to medium-term growth have diminished due to India's rapid economic recovery and easing financial sector weaknesses, despite near-term headwinds from the global commodity price shock.
In the global market, U.S. Treasury yields rose on Thursday after the European Central Bank (ECB) signaled a series of upcoming interest rate hikes and before highly anticipated U.S. inflation data due on Friday. Furthermore, oil prices fell but still hovered near three-month highs, with fears over new COVID-19 lockdown measures in Shanghai outweighing solid demand for fuels in the world's top consumer United States.
Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.52% from its previous close of 7.49% on Thursday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.29% from its previous close of 7.27% on Thursday.