Bond yields traded higher on Friday as Monetary Policy Committee (MPC) under the Reserve Bank of India (RBI) at its sixth and final bi-monthly monetary policy for FY26 has unanimously decides to keep the policy repo rate under the liquidity adjustment facility unchanged at 5.25%, citing positive inflation and growth outlook amid evolving economic conditions.

In the global market, U.S. Treasury yields were lower on Thursday as investors reacted to a number of labor market data releases Thursday that revealed more signs of weakness. Furthermore, oil prices settled down on Thursday in choppy trading, after the U.S. and Iran agreed to hold talks in Oman on Friday, easing concerns about Iranian crude supplies.

Back home, the yields on new 10 year Government Stock were trading 7 basis points higher at 6.72% from its previous close of 6.65% on Thursday.

The benchmark five-year interest rates were trading 7 basis points higher at 6.51% from its previous close of 6.44% on Thursday.