Bond yields edged lower on Friday, on sustained demand from corporates and banks. However, gains were limited as investors remained cautious ahead of a weekly auction of notes.
In the global market, yields on U.S. 10-year notes reached a 10-month high on Thursday after China reported fourth-quarter growth that accelerated for the first time in seven years. Furthermore, oil prices fell on a bounce-back in U.S. production, but ongoing declines in crude inventories curbed losses in the market.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.46% from its previous close of 7.47% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.25% from its previous close of 7.26% on Thursday.