Bond yields were trading lower on Friday with a private report stating that retail inflation in India likely eased a bit last month but stayed above the Reserve Bank of India's upper threshold for a second straight month, keeping the central bank on course for further policy tightening.
In the global market, Treasury yields dropped on Thursday as investors digested comments from Federal Reserve Chairman Jerome Powell about interest rate policy and assessed the state of the economy. Furthermore, oil prices slipped on Thursday as fears over the economic impact of rising interest rates offset a surprise drop in US crude inventories and hopes for Chinese demand.
Back home, the yields on new 10 year Government Stock were trading 3 basis points lower at 7.41% from its previous close of 7.44% on Thursday.
The benchmark five-year interest rates were trading 2 basis points lower at 7.39% from its previous close of 7.41% on Thursday.