Bond yields remained flat on Friday as investors turned cautious ahead of a fresh supply of notes later today. Some cautiousness prevailed in the markets on tighter P-Note norms. SEBI had made rules tougher on controversy-ridden P-Notes, making mandatory for all end-users of these overseas instruments to follow anti-money laundering law in India and asked their issuers to report any suspected breach immediately.
In the global markets, U.S. Treasury prices rose on Thursday as markets rebounded from Wednesday's sell-off and priced down the odds of a Federal Reserve interest rate increase after evenhanded remarks from New York Fed President William Dudley. Furthermore, Oil prices rose in early trading as turmoil in Nigeria, shale bankruptcies in the United States and crisis in Venezuela all contributed to tightening supplies.
Back home, the yields on new 10 year Government Stock were trading flat from its previous close at 7.47% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 7.44% from its previous close at 7.43% on Thursday.