Bond yields edged lower on Friday on sustained demand from corporates and banks. Bond sentiments got some support with President Pranab Mukherjee approving the ordinance to amend the Banking Regulation Act, 1949, paving the way for a new framework to deal with the problem of non-performing assets.
In the global market, U.S. Treasury yields rose on Thursday after strong labor data reinforced expectations the Federal Reserve was likely to raise interest rates again in June, and as investors waited on Friday's highly anticipated jobs report for April. Furthermore, Oil prices were marooned near five-months lows after a near 5 percent fall in the previous session on concerns over rising U.S. supply, wiping out all of the price gains since OPEC's move to curb output.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 6.94% from its previous close of 6.97% on Thursday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.05% from its previous close of 7.07% on Thursday.