Bond yields remains steady on Friday on speculation that rising inflation will further prevent interest-rate cuts by the central bank. Further, investors remained cautious on expectation that India's banks will slowdown its purchases of government securities until the end of September, as sharp rise in yields will pressure bottom lines, which is already weighed down by bad loans.
In the global markets, U.S. Treasury yield curve flattened on Thursday on expectations the Federal Reserve is on track to raise interest rates this year. Furthermore, Oil prices rose slightly on Friday in thin trade in Asia, underpinned by a power outage at Britain's largest oilfield, though risks of oversupply following the Iranian nuclear deal and mixed economic data held back prices
Back home, the yields on new 10 year Government Stock were trading flat at its previous close of 7.84% on Thursday.
The benchmark five year yields were also trading flat at its previous close of 8.01% on Thursday.