Bond yields traded higher on Friday as Global Trade Research Initiative (GTRI) Founder Ajay Srivastava has said that imposition of steep 125 per cent tariffs on China by the US could help Indian products become more competitive in the US market, especially in sectors where India competes directly with China, such as textiles, leather goods, engineering items, and electronics. In these segments, India competes directly with China.
In the global market, U.S. Treasury yields moved lower on Thursday as the market received positive news on inflation and investors breathed a sigh of relief after President Donald Trump enacted a 90-day tariff reprieve on most countries, reversing a sharp sell-off in bonds. Furthermore, oil prices fell more than $2 per barrel on Thursday, wiping away the prior session's rally, as investors reassessed the details of a planned pause in sweeping U.S. tariffs and focus shifted to a deepening trade war between Washington and Beijing.
Back home, the yields on new 10 year Government Stock were trading 10 basis points higher at 6.54% from its previous close of 6.44% on Wednesday.
The benchmark five-year interest rates were trading 07 basis points higher at 6.33% from its previous close of 6.26% on Wednesday.