Bond yields traded lower on Friday even after PHD Chamber of Commerce and Industry in its latest report has showed that India's Gross Domestic Product (GDP) growth is likely to enter a double digit growth trajectory and may grow at more than 11 per cent in the next financial year, as economic activities gather pace and investor sentiments revive.
In the global market, U.S. Treasury yields rose on Thursday, pushing prices lower, after a 30-year bond auction that showed mixed results, suggesting persistent uncertainty about appetite for government debt and amid a huge Verizon corporate bond deal that has spurred selling of Treasuries for hedging purposes. Furthermore, Brent crude prices eased but hovered near $70 a barrel as production cuts by major oil producers constrained supply, with optimism about a recovery in demand for the resource in the second half of the year also lending support.
Back home, the yields on new 10-year Government Stock were trading 1 basis point lower at 6.23% from its previous close of 6.24% on Thursday.
The benchmark five-year interest rates were trading flat its previous close of 5.88% on Thursday.