Bond yields traded higher on Friday even as oil prices increased due to renewed conflict between the U.S. and Iran. Investors attention remained focused on the auction of a new 10-year paper.
In the global market, U.S. Treasury yields turned higher on Thursday as investors focused on the latest developments in the Middle East and their potential impact on the outlook for inflation and interest rates. Furthermore, Oil prices rose on Friday after renewed fighting broke out between the United States and Iran, threatening a shaky ceasefire and dashing hopes for progress to reopen the Strait of Hormuz, a key transit route for oil and liquefied natural gas.
Back home, the yields on new 10 year Government Stock were trading 03 basis points higher at 6.96% from its previous close of 6.93% on Thursday.
The benchmark five-year interest rates were trading 04 basis points higher at 6.66% from its previous close of 6.62% on Thursday.