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Bond yields fell on Monday due to value-buying among traders. The yield on the 10-year benchmark bond ended down five basis points compared with its previous close at 7.90 per cent.
“Yields fell due to value-buying among traders. There are redemptions expected this month due to which there will be replacement demand for bonds,” said Debendra Kumar Dash, assistant vice-president (money market), DCB Bank.
Earlier this month, the yield on the 10-year benchmark bond had climbed to eight per cent. According to bond traders the central bank was not comfortable with yields rising sharply.
Meanwhile, the rupee ended weak on Monday. The rupee ended at 63.72 to a dollar compared with its previous close of 63.52.
“There was dollar buying by state-run banks possibly on behalf of corporates and debt payments. The bias for the rupee continues to be towards weakening,” said Sandeep Gonsalves, forex consultant and dealer, Mecklai & Mecklai.
