Bond yields traded lower on Friday even after Asian Development Bank (ADB), in its Asian Development Outlook report, has said that India's Gross Domestic Product (GDP) growth is projected to grow by 6.9 per cent in the current fiscal (FY27), and rise to 7.3 per cent in the following fiscal (FY28).

In the global market, US 10-year Treasury yield was little changed on Thursday as investors were focused on several important economic reports, which are expected to provide more insight into inflation trends. Furthermore, oil prices rose Thursday as Iran allowed only restricted naval traffic through the Strait of Hormuz, renewing fears of energy supply disruptions.

Back home, the yields on new 10 year Government Stock were trading 1 basis point lower at 6.94% from its previous close of 6.95% on Thursday.

The benchmark five-year interest rates were trading 1 basis point higher at 6.56% from its previous close of 6.55% on Thursday.