Bond yields trade higher on Friday despite Commerce Ministry showed India's trade deficit widened to $23.50 billion on an annual basis in July from $19 billion in the same month last year. In June, the trade deficit was $20.98 billion.
In the global market, U.S. Treasury yields rose Thursday after July retail sales data came in surprisingly strong. Furthermore, Oil prices gained more than $1 a barrel on Thursday after U.S. economic data allayed fears of recession in the world's biggest economy, although the rally was limited by concerns of slower global demand.
Back home, the yields on new 10 year Government Stock were trading 13 basis points higher at 6.98% from its previous close of 6.85% on Wednesday.
The benchmark five-year interest rates were trading 13 basis points higher at 6.90% from its previous close of 6.77% on Wednesday.
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