Bond yields traded higher on Friday as the RBI upped its forecast for India's GDP growth to 7 per cent for FY24 from 6.5 per cent earlier. Besides, Monetary Policy Committee of the Reserve Bank of India (RBI) in its December review meeting unanimously decided to keep the policy repo rate unchanged at 6.5 per cent, thus maintaining status quo for the fifth straight time.
In the global market, The U.S. 10-year Treasury yield edged higher changed on Thursday as investors considered the state of the labor market and broader economy ahead of Friday’s all-important jobs report. Furthermore, oil prices reclaimed some ground on Thursday after tumbling to a six-month low the previous day, but investors remained concerned about sluggish demand in the U.S. and China.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.25% from its previous close of 7.23% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.22% from its previous close of 7.21% on Thursday.