Bond yields traded flat on Friday, as traders were on the sidelines after research agency India Ratings report stated that frequent bid cancellations, the falling Indian rupee and lack of clarity on safeguard duty implications are making bidders cautious about competitive tariffs in renewable energy projects.
In the global market, US Treasury yields fell to one-week lows on Thursday, sliding for a second straight session, as Wall Street shares dropped a day after posting steep losses on worries about prospects for rising interest rates. Furthermore, Oil prices steadied after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 percent for the week.
Back home, the yields on new 10 year Government Stock were trading flat at its previous close at 7.99% on Thursday.
The benchmark five-year interest rates were trading 1 basis points higher at 7.97% from its previous close of 7.96% on Thursday.