Bond yields edged lower on Friday, as Moody's Investors Service upgraded India’s sovereign rating to Baa2 from Baa3 and changed the outlook to stable from positive.
In the global market, U.S. Treasury two-year yields hit a nine-year high on Thursday as risk appetite recovered globally and a batch of neutral to solid economic reports put the Federal Reserve on track to raise interest rates in 2018. Furthermore, oil prices steadied after recent declines, but were on track for their first weekly fall in six weeks as concerns about surging U.S. supplies put a dent in the market's recent rally.
Back home, the yields on new 10 year Government Stock were trading 9 basis points lower at 6.97% from its previous close of 7.06% on Thursday.
The benchmark five-year interest rates were trading 7 basis points lower at 6.84% from its previous close of 6.91% on Thursday.