Bond yields edged lower on Friday even after commerce ministry said the manufacturing sector attracted foreign direct investments worth $21.34 billion in 2021-22, an increase of 76 per cent year-on-year.
In the global market, Yields fell as Treasuries rallied on Thursday after data showed the U.S. economy contracted again in the second quarter, suggesting to investors that the Federal Reserve may not need to be so aggressive in trying to cool runaway inflation. Furthermore, Oil prices gained, lifted by supply concerns and a weaker U.S. dollar as attention turns to what OPEC and allies including Russia agree at a meeting next week marking the end of their 2020 output reduction pact.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 7.32% from its previous close of 7.33% on Thursday.
The benchmark five-year interest rates were trading 3 basis points lower at 7.07% from its previous close of 7.10% on Thursday.