New Delhi, July 11 -- Indian government bond prices rose in early trade on Friday, supported by overnight gains in the U.S. Treasuries, lower crude oil prices and continued foreign investor buying, although market participants remained cautious ahead of a Rs 32,000 crore government bond auction.

Foreign Inflows Support Bond Market The benchmark 6.94 percent 2036 government bond yield declined 2 basis points to 6.7348 percent. Bond yields move inversely to prices.

Foreign institutional investors remained active buyers, purchasing a net Rs 1,500 crore worth of government securities on Thursday, reported Reuters.

Overseas inflows into Indian bonds have approached USD 4 billion since early June, driven by expectations that recent policy me...