Bond yields trade higher on Friday

Bond yields traded higher on Friday after India’s exports contracted for the 10th straight month by 24.33% in September to $21.84 billion due to steep fall in shipments of petroleum productions, iron ore, and engineering goods amid tepid global demand.

In the global market, U.S. Treasuries yields rose modestly on Thursday after data showed a measure of U.S. consumer prices that strips out food and energy costs rose more than expected in September, marginally supporting views of a 2015 Federal Reserve rate hike. Furthermore, Crude oil futures rose on Friday to snap a week-long fall, as U.S. gasoline and distillate inventories dropped more than expected.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 7.56% from its previous close at 7.54% on Thursday.

The benchmark five-year interest rates were trading 1 basis point higher at 7.63% from its previous close at 7.64% on Thursday.