Bond yields traded higher on Friday even after Engineering Export Promotion Council India’s (EEPC India) latest data showing that India’s engineering exports to the UAE (the second-largest market) and Saudi Arabia (the fourth-largest market) fell sharply in March 2026 as ongoing West Asia conflict has severely disrupted global shipping, particularly through the Strait of Hormuz.

In the global market, U.S. Treasury yields rose on Thursday as renewed U.S.–Iran tensions raised concerns that inflation might go up. Furthermore, oil prices went up on Thursday on concern about an escalation of the conflict in the Middle East that could prolong the Strait of Hormuz closure, worsening energy disruptions.

Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.97% from its previous close of 6.95% on Thursday.

The benchmark five-year interest rates were trading 6 basis points higher at 6.71% from its previous close of 6.65% on Thursday.