Bond yields traded higher on Friday even after data showing that India's merchandise trade deficit rose to its highest level since December 2022 to $22.12 billion in May. India's exports in the month of May declined 10.3 per cent to $34.98 billion while imports fell 6.6 per cent to $57.1 billion.
In the global market, U.S. Treasury yields were lower on Thursday as investors digested a flurry of economic data and the repercussions from the latest policy statement from the Federal Reserve on Wednesday afternoon. Furthermore, Oil prices gained on Thursday on a weaker U.S. dollar and a jump in refinery runs in top crude importer China.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.05% from its previous close of 7.03% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.99% from its previous close of 6.98% on Thursday.