Bond yields traded flat on Friday, as the possibility of North Korea testing another hydrogen bomb added to geopolitical concerns in the region, dampening the demand for emerging market assets.
In the global market, U.S. Treasury yield curve flattened to two-and-a-half month lows on Thursday as investors adjusted for the likelihood of a December interest rate increase, a day after the Federal Reserve struck a more-hawkish-than-expected tone at its September meeting. Furthermore, Oil prices were mixed in early Asian trade as the market waited to see whether major oil producers would extend supply cuts beyond March at a meeting in Vienna later in the day.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 6.68% on Thursday.
The benchmark five-year interest rates were trading 1 basis point higher at 6.64% from its previous close of 6.63% on Thursday.