Bond yields traded higher on Friday with Global rating agency Fitch Ratings’ report stating that Indian banks' Viability Ratings (VR) will continue to benefit from improved operating conditions and performance in the near term. It expects Issuer Default Ratings (IDRs) to remain stable across banks as they are driven by its expectation of extraordinary support from the Indian sovereign (BBB-/Stable), should there be a need.
In the global market, U.S. Treasury yields rose on Thursday as investors parsed economic data and comments from Federal Reserve officials for clues about what could be on the horizon for the economy. Furthermore, oil prices edged up on Thursday as markets shrugged off deflationary indicators in China and looked for further clues on the status of demand from the world’s two biggest oil consumers.
Back home, the yields on new 10 year Government Stock were trading 4 basis points higher at 7.30% from its previous close of 7.26% on Thursday.
The benchmark five-year interest rates were trading 3 basis points higher at 7.32% from its previous close of 7.29% on Thursday.
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