Bond yields were trading lower on Friday even after Chief Economic Advisor V Anantha Nageswaran expressed hope that the GDP growth for the current financial year will exceed the projected 7 per cent in view of the expected revision of high frequency data.
In the global market, U.S. Treasury yields climbed on Thursday as investors considered the prospect of further interest rate hikes by the Federal Reserve and awaited fresh economic data. Furthermore, oil prices slipped on Thursday on worries about rising U.S. crude inventories and concerns about more rate hikes in Europe potentially hitting growth, paring this week's gains on signs of a strong economic rebound in China.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 7.41% from its previous close of 7.43% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 7.41% from its previous close of 7.42% on Thursday.