Bond yields traded higher on Friday as S&P Global Ratings has projected Indian banking sector's weak loans will decline to 3-3.5 per cent of gross advances by March 31, 2025 on the back of structural improvement, including healthy corporate balance sheets, tighter underwriting standards, and improved risk-management practices.
In the global market, U.S. Treasury yields climbed on Thursday as investors assessed the state of the economy and looked ahead to fresh data and the Federal Reserve’s meeting next week. Furthermore, Oil prices settled slightly higher on Thursday on lower U.S. crude inventories and strong crude imports by China, but a weaker demand outlook kept investors cautious.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.10% from its previous close of 7.08% on Thursday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.08% from its previous close of 7.05% on Thursday.