Bond yields were trading higher on Friday as Chief Economic Advisor (CEA) V Anantha Nageswaran expressed optimism over India’s economic growth and said that the country’s economy is likely to grow at the rate of 6.5 per cent in the coming decade on the back of the turnaround in financial and investment cycle.
In the global market, longer-dated U.S. Treasury yields fell on Thursday as investors waited on key inflation data due on Friday and continued to evaluate whether recent stress in the banking sector has been contained. Furthermore, oil prices rose more than 1% on Thursday, supported by lower U.S. crude stockpiles and a halt to exports from Iraq's Kurdistan region, which offset pressure from a smaller-than-expected cut to Russian supplies.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.33% from its previous close of 7.29% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.21% from its previous close of 7.18% on Wednesday.