Bond yields traded higher on Friday after a private report stated that the Indian economy can grow by 7-7.8 per cent this fiscal on the back of better agriculture production and a revitalised rural economy amid global headwinds mainly due to the ongoing Russia-Ukraine war.
In the global market, U.S. Treasury yields fell to two-week lows on Thursday on concerns that the Federal Reserve will cause a recession by aggressively hiking interest rates, and on a growing belief that yields may have topped for the near term even if inflation stays high. Furthermore, oil prices pared gains in a volatile session after rising nearly $1 per barrel in early Asian trade, as fears of slower demand from cooling U.S. economic activity and global supply uncertainty weighed on sentiment.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.42% from its previous close of 7.41% on Thursday.
The benchmark five-year interest rates were trading 8 basis points higher at 7.30% from its previous close of 7.22% on Thursday.