Bond yields traded higher on Friday as Associated Chambers of Commerce and Industry of India (ASSOCHAM) stated that the Reserve Bank of India's decision to keep the benchmark interest rates unchanged is on the expected lines, and added that the focus of the monetary policy is clearly on further taming inflation for a stable growth.
In the global market, treasury yields tumbled on Thursday after the number of Americans filing new claims for unemployment benefits rose more than expected last week, suggesting a slowing U.S. labor market that adds to mounting concerns of a potential recession. Furthermore, crude oil prices settled lower on Thursday but rebounded from earlier losses after the U.S. and Iran both denied a report that they were close to a nuclear deal.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.03% from its previous close of 7.02% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.98% from its previous close of 6.97% on Thursday.