Bond yields retreated tad from 33-month low level scaled in previous session, on account of profit-booking. However, the yields were trading in tight range as investors preferred to be on the sidelines ahead of the release of March’s factory output data. Further, expectations of more bond repurchase were also supporting bond prices.
On the global front, US 10-year Treasuries sagged on Friday, after the previous day's jobless claims data eased some concern about the economy's outlook and as the dollar's rise to a four-year high versus the yen weighed on sentiment. Meanwhile, Brent oil edged down on Friday, trading in a tight range above $104 a barrel as stronger signs of US recovery against persistent doubts over the Chinese economy sent mixed signals about demand from the world's top two consumers.
Back home, the yields on 10-year 8.79% - 2021 bonds were trading 2 basis points higher at 7.62% from its previous close of 7.60% on Thursday.
The benchmark five-year interest rate swaps were trading unchanged from previous close of 6.90% on Thursday.
Meanwhile, registering third straight month of expansion, India's annual industrial output growth measured by index of industrial production (IIP) grew by 2.5% at 192.3 for the month of March 2013, higher than previous month’s growth figure of 0.6%, later revised to 0.5%, and in line with street estimates of over 2% figure.
