Bond yields traded flat on Friday as a study by researchers at the Reserve Bank of India said the surging prices of tomatoes can potentially disrupt India's inflation trajectory.
In the global market, U.S. Treasury yields climbed on Thursday after data on the labor market further fueled expectations the Federal Reserve will be aggressive in raising interest rates as it tries to rein in persistently high inflation down towards its 2% target rate. Furthermore, oil prices were near flat on Thursday as the market weighed tighter U.S. crude supplies with the higher likelihood of a U.S. interest rate hike that could dent energy demand.
Back home, the yields on new 10 year Government Stock were trading flat with its previous close of 7.14% on Thursday.
The benchmark five-year interest rates were trading 2 basis points higher at 7.12% from its previous close of 7.10% on Thursday.