Bond yields edged lower on Friday as sentiments got some support with chief economic advisor Arvind Subramanian stating that India has the potential to sustain 8 to 10 percent GDP growth rate during the next two to three years, despite April-June GDP growth coming in below expectations at 7.1 percent.
In the global market, U.S. Treasury yields were little moved on Thursday after weak U.S. manufacturing data contrasted with strong overseas manufacturing numbers and U.S. jobless claims data that beat expectations as investors tried to position ahead of Friday's U.S. non-farms payrolls report. Furthermore, Crude prices rose after losses of more than 3 percent a day earlier, with investors treading cautiously ahead of key U.S. employment data that will help gauge the health of the world's largest economy and oil consumer.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.10% from its previous close of 7.12% on Thursday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.00% from its previous close of 7.02% on Thursday.