Bond yields traded flat as investors remained cautious on report that United Nations has downgraded its GDP growth forecast for India for 2016 to 7.5 per cent from 8.2 per cent estimated earlier, largely due to slow progress in implementing reform policies.
In the global market, Yields on U.S. Treasuries rose on Thursday as energy stocks led a rebound in equities, reducing appetite for safe-haven U.S. government debt. Furthermore, U.S. crude oil futures fell in early Asian trade on Friday, heading lower after posting the first significant gains for 2016 in the previous session, as the prospect of additional Iranian supply looms over the market.
Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.78% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.71% from its previous close at 7.70% on Thursday.