Bond yields traded lower on Friday, as referring to economic crisis in Sri Lanka, a Reserve Bank article said states are showing warning signs of building stress, and the 5 most indebted ones -- Punjab, Rajasthan, Bihar, Kerala and West Bengal -- need to take corrective measures by cutting down expenditure on non-merit goods.
In the global market, U.S. Treasury yields fell on Thursday as fears of a recession dented risk appetite and boosted demand for safe haven U.S. debt, a day after the Federal Reserve hiked its benchmark interest rate by the most since 1994. Furthermore, Oil prices edged slightly lower as worries about global economic growth and uncertainty weighed on markets following numerous interest rate hikes around the world this week.
Back home, the yields on new 10 year Government Stock were trading 4 basis points lower at 7.57% from its previous close of 7.61% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.39% from its previous close of 7.40% on Thursday.