Bond Market, Rupee Gain On Rate Cut, And RBI’s Moves To Ensure Liquidity

Bond Market, Rupee Gain On Rate Cut, And RBI's Moves To Ensure Liquidity
Mumbai: The bond market gained after the Reserve Bank of India (RBI) cut the key policy repo rate by 25 basis points while announcing measures to ensure more availability of cash in the banking system.

The 10-year benchmark bond yield fell as much as 9 basis points to 7.34 per cent from levels just before policy announcement. The 10-year yield had closed at 7.41 percent on Monday.

Bonds gained also as the central bank separately announced bond purchases under the open market operation for Rs 15,000 crore ($15.13 million) on April 7.

The benchmark BSE Sensex fell 0.65 per cent.

The rupee strengthened marginally to 66.09/10 per dollar compared with 66.12 before the announcement. The rupee had closed at 66.1975/66.2075 on Monday.