Bond yields edged higher on Friday as World Economic Forum (WEF) President Borge Brende said that India is on track to become a $10 trillion economy in coming years and grab the third-largest slot soon. He described the country as a place with optimism not seen elsewhere in a very fragmented and polarised world.
In the global market, U.S. Treasury yields were mostly higher on Thursday in choppy trading after economic data showed the world's largest economy remained stable, reinforcing expectations that interest rate cuts by the Federal Reserve will be pushed out to June or later in the year. Furthermore, Oil futures settled higher on Thursday as hostilities continued in the Red Sea with Iran-aligned Houthis stepping up attacks near Yemen, but a large build in U.S. crude inventories weighed on gains.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.07% from its previous close of 7.06% on Thursday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.06% from its previous close of 7.04% on Thursday.