Bond yields edged higher on Friday ahead of the Rs 110 billion central government bond auction scheduled for later in the day. Also, investors remained cautious over the 2017-18 Union Budget, scheduled to be unveiled on February 1.
In the global market, U.S. Treasury yields abruptly turned lower on Thursday after Mexican President Enrique Pena Nieto cancelled a scheduled meeting with U.S. President Donald Trump. Furthermore, oil futures were little changed on Friday, following a sharp rally in the New York session fueled by rising expectations of a production cut by big oil-producing countries.
Back home, the yields on new 10 year Government Stock were trading 2 basis points higher at 6.45% from its previous close of 6.43% on Wednesday.
The benchmark five year yields were trading flat at its previous close at 6.56% on Wednesday.