Bond yields traded higher on Friday as domestic rating agency Crisil’s report said that the cumulative recovery rate of security receipts (SRs) for asset reconstruction companies (ARCs) is set to jump for the second straight year on the back of better show in infrastructure sector and other factors. It stated the cumulative recovery rate of security receipts is likely to jump by up to 15 percentage points per annum, touching 75-80 per cent by FY26.
In the global market, U.S. Treasury yields moved lower on Thursday as economic data showed slower-than-expected growth for the United States in the fourth quarter. Furthermore, oil prices were little changed on Thursday as investors focused on tariffs threatened by U.S. President Donald Trump on Mexico and Canada, the two largest suppliers of crude to the United States.
Back home, the yields on new 10 year Government Stock were trading 13 basis points higher at 6.80% from its previous close of 6.67% on Thursday.
The benchmark five-year interest rates were trading 12 basis points higher at 6.73% from its previous close of 6.61% on Thursday.