Bond yields were trading steady at its previous close of 7.87%, as investors remained on the sidelines and refrained from any buying activity ahead of the CPI and IIP data, which is to be announced later in the day. Besides, rising bond yields since the month's beginning have triggered stop-losses for banks and made borrowing by bonds expensive for companies.
In the global markets, US Treasuries market rallied on Thursday with benchmark yields retreating from seven-month highs as lower European borrowing costs and a robust 30-year bond auction renewed appetite for U.S. government bonds following a two-day selloff. Furthermore, Oil prices dipped on Friday after Saudi Arabia said it was ready to raise output further if needed, potentially adding to oversupply amid a slowing global economy and halting gains made previously in the week.
Back home, the yields on new 10 year Government Stock were trading steady at its previous close of 8.87%.
The benchmark five year yields were trading down by 2 basis points at 8.08% from its previous close of 8.10% on Wednesday.
The Reserve Bank of India has announced the auction of 91-days and 364-days Government of India Treasury Bills for notified amount of Rs 9,000 crore and Rs 6000 crore respectively. The auction was conducted on June 10, 2015 using 'Multiple Price Auction' method.