Bonds gain on bargain buying

Written by Reuters | Mumbai | Updated: Aug 23 2013, 08:46am hrs
Government bond yields dropped on Thursday as investors sought bargains after a sharp rise in yields in recent sessions, while the central banks upcoming open market operation to buy longer-dated debt on Friday also underpinned sentiment.

The benchmark 10-year bond yield closed at 8.23%, down 18 basis points on the day. The yield rose as high as 8.62% in opening trade following the Federal Reserves minutes.