Bond yields trade marginally lower on Friday

Bond yields traded lower on Friday after Finance Minister Arun Jaitley said the tax rate for GST will be 'optimum' even as there were indications that it may be higher than 18 percent. Meanwhile, Moody’s investors Service has said that the GST implementation will be positive for the country’s economic growth without any significant impact on inflation, even then investors remained cautious before next week's monetary policy meet.

In the global market, U.S. Treasury yields fell on Thursday, with some short- and medium-term issues hitting their lowest levels in more than three weeks, after the Bank of England cut interest rates for the first time since 2009 and said it would buy government bonds. Furthermore, Oil prices eased, but remained well above this week's lows as traders covered short positions after profiting from sharp declines since June.

Back home, the yields on new 10 year Government Stock were trading 1 basis points lower at 7.16% from its previous close at 7.17% on Thursday.

The benchmark five-year interest rates were trading 1 basis points lower at 7.06% from its previous close at 7.07% on Thursday.