Bond yields traded lower as investors got support after the central bank said it will buy more debt through its open-market operations (OMO). The OMO announcement has helped ease yields. Further, sentiment also got some support with foreign direct investment (FDI) in the country more than doubling to about $ 4.5 billion in December 2015.
In the global market, U.S. Treasuries' yields ended lower on Thursday as data showed weaker U.S. growth and investors closed trades that had bet on further interest rate increases ahead of Friday's closely watched employment report. Furthermore, Crude oil futures edged up in lackluster trading on Friday as Asian liquidity faded ahead of the Lunar New Year holiday across large parts of the region.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.81% from its previous close at 7.83% on Thursday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.63% from its previous close at 7.65% on Thursday.