Bond yields edged lower on Friday as investors wager the central bank will adopt a ‘dovish’ policy stance next week after a drastic deceleration in the nation’s GDP growth and inflation.
In the global market, U.S. short-dated Treasury yields briefly touched at least one-week highs on Thursday after strong data on U.S. private payrolls marginally boosted expectations for more Federal Reserve interest rate increases in 2017, while caution ahead of Friday's jobs report limited the move. Furthermore, Oil prices dropped nearly 1 percent in early Asian trade, dragged down by ongoing concerns over a global glut in crude supply despite a bigger-than-expected draw in U.S. crude inventories.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.62% from its previous close of 6.63% on Thursday.
The benchmark five-year interest rates were trading flat at its previous close at 6.84% on Thursday.