Bond yields traded higher on Friday despite rising conflict in the Middle East. Iran claimed that it has struck a U.S. oil tanker in the northern Persian Gulf, raising fears of a wider conflict after the Islamic republic threatened to halt shipping through the vital Strait of Hormuz.

In the global market, U.S. Treasury yields moved higher on Thursday after the latest developments in the U.S.-Iran war and newly released economic data put investors back on edge. Furthermore, U.S. crude oil prices on Thursday topped $80 per barrel as the escalating Iran war disrupts global fuel supplies, with traffic in the Strait of Hormuz at a standstill due to attacks on tankers.

Back home, the yields on new 10 year Government Stock were trading 5 basis points higher at 6.68% from its previous close of 6.63% on Thursday.

The benchmark five-year interest rates were trading 4 basis points higher at 6.37% from its previous close of 6.33% on Thursday.