Bond yields traded lower on Friday even as India's services sector expanded in August at the fastest pace in one-and-a-half years amid strong inflows of new work and improved demand conditions. The seasonally adjusted India Services Business Activity Index rose from 45.4 in July to 56.7 in August, as the reopening of several establishments and increased consumer footfall boosted sales.
In the global market U.S. Treasury yields drifted lower on Thursday as the market remained on hold ahead of the government's closely watched employment report, which potentially could break yields out of their tight range. Furthermore, oil prices dipped after posting strong overnight gains on a weaker dollar and a bigger-than-expected fall in U.S. crude stocks and were headed for small gains on the week ahead of a highly anticipated U.S. monthly jobs report.
Back home, the yields on new 10-year Government Stock were trading 2 basis points lower at 6.15% from its previous close of 6,17% on Thursday.
The benchmark five-year interest rates were trading flat with its previous close of 5.58% on Thursday.
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