Bond yields edged higher on Friday due to lack of demand from borrowing banks amid comfortable liquidity situation in the banking system.
In the global market, U.S. Treasury prices gained on Thursday as weaker stock markets and a falling U.S. dollar increased demand for safe haven bonds, and after comments from a senior Federal Reserve official late on Wednesday were viewed as relatively dovish. Furthermore, oil prices edged up on Friday, lifted by a report that producer club OPEC could extend an output cut aimed at reining in a global fuel supply overhang.
Back home, the yields on new 10 year Government Stock were trading 1 basis point higher at 6.86% from its previous close of 6.85% on Thursday.
The benchmark five year yields were trading 3 basis points higher at 6.96% from its previous close of 6.93% on Thursday.