Bond yields edged lower on Friday as investors remained cautious ahead of the key gross domestic product (GDP) data expected on August 31, 2015. Besides, strong growth in equity encourages investors to transfer their holdings from fixed income securities to equity.
In the global front, U.S. Treasuries prices were modestly lower on Thursday, as a rally on Wall Street and a surprisingly large upward revision on U.S. economic growth in the second quarter revived some bets the Federal Reserve would raise rates by year-end. Furthermore, Crude oil futures rose on Friday, adding to their biggest one-day rally in over six years the day before led by recovering equity markets and news of diminished crude supplies.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 7.77% from its previous close at 7.76% on Thursday.
The benchmark five year yields were trading 1 basis point higher at 7.89% from its previous close of 7.88% on Thursday.