Bond yields edged higher on Friday as Reserve Bank of India (RBI) decided to hike the repo rate by 50 basis points to 5.4 per cent, crossing the pre-pandemic level of 5.15 per cent. MPC decided to focus on withdrawal of accommodation to keep inflation within target while supporting growth.
In the global market, U.S. Treasury yields fell on Thursday, as a gloomy outlook from the Bank of England fueled global recession concerns while investors readied for U.S. jobs data to wrap up what had been a volatile week for the bond market. Furthermore, oil languished near its lowest since the start of the war in Ukraine on fears of a global recession, though stocks ignored such worries, gaining ahead of U.S. jobs data that will give another clue to the health of the world's largest economy.
Back home, the yields on new 10 year Government Stock were trading 15 basis points higher at 7.30% from its previous close of 7.15% on Thursday.
The benchmark five-year interest rates were trading 17 basis points lower at 7.05% from its previous close of 6.88% on Thursday.