Bond prices rally, Re steady

Prices of government securities rallied sharply after the RBI left key rates unchanged in the first quarterly review of the monetary policy today.

Yield on the actively traded, 8-year, 7.27% bond dropped to 6.94% from 7.02% in morning deals. The bond had closed at an yield of 7.07% yesterday.

The spot rupee was steady at 43.52 per dollar in early noon deals today.