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Bond yields trade higher on Friday

20 Jan 2023 Evaluate

Bond yields were trading higher on Friday after the Reserve Bank of India’s (RBI’s) January 2023 Bulletin stated that lead indicators suggest that domestic current account deficit (CAD) is likely to reduce in 2023, while macro-economic stability has received a boost from inflation being brought back to the official tolerance band.

In the global market, Treasury yields rose on Thursday as investors weighed the latest unemployment data and awaited remarks from Federal Reserve speakers. Furthermore, Oil prices rose on Thursday, resuming a recent rally built around rising Chinese demand, while the market wrote off a second straight week of large builds in U.S. crude inventories.

Back home, the yields on new 10 year Government Stock were trading 3 basis points higher at 7.34% from its previous close of 7.31% on Thursday.

The benchmark five-year interest rates were trading 4 basis points higher at 7.16% from its previous close of 7.12% on Thursday.