Bond yields traded lower on Friday as a report by economic think tank GTRI said India's exports of products like coffee, leather hides and paperboard worth $1.3 billion annually to the European Union will get impacted due to the deforestation regulation adopted by the EU earlier this week.
In the global market, U.S. Treasury yields rose slightly on Thursday as investors gauged the progress in Washington on raising the debt ceiling, with benchmark 10-year yields hitting their highest in over two weeks. Furthermore, Oil prices slid on Thursday after solid U.S. economic data spurred the dollar to a two-month high on growing expectations the U.S. Federal Reserve could raise interest rates again in June.
Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.97% from its previous close of 6.98% on Thursday.
The benchmark five-year interest rates were trading 1 basis point lower at 6.90% from its previous close of 6.91% on Thursday.