Rupee, Bonds Rally

The bond and currency markets showed clear signs of a rebound. The rupee gained 0.1 per cent against the dollar and bond yields fell 5 basis points to new lows.

The rupee ended at 45.87/88 per dollar, up from Monday's close of 45.90/91. The yield on the benchmark 10-year bond fell to a record low of 5.22 per cent during the day in a market flush with money.

The bonds market continued to rally, with prices moving up 80-85 paise in the long-term segment. The yield on 10- year benchmark 9.81 per cent 2013 paper closed at 5.24 per cent versus 5.29 per cent at close on Monday.

However, the short-term segment, which had witnessed a lot of buying interest on Monday