Treasury yields traded lower after a strong auction on Thursday of $15 billion in 10-year TIPS as investors sought protection on expectations of rising inflation.
A closely watched part of the yield curve measuring the gap between yields on two- and 10-year Treasury notes was last down 1.32 basis points at 96.93 basis points.
During a federal cabinet held under the chairmanship of Prime Minister Imran Khan it was decided to waive a number of taxes on these bonds under the Income Tax Ordinance 2001 Schedule.
The average yield on new German bonds issued until end of November was -0.56 percent, resulting in revenues of 7.07 billion euros, according to the finance ministry document.
The international bond issue pays a 7.50% semi-annual coupon and matures in August 2023. The bonds were arranged by Citigroup Global Markets and sold to European asset managers.