Bonds rise

Written by Reuters | Mumbai | Updated: Jul 3 2014, 13:34pm hrs
Government bonds saw their biggest single-day gain in 1-1/2 months on hopes of a fiscally prudent Budget next week.

Bonds also gained as monsoon showers in Mumbai and other parts of the country eased some of the concerns about higher food prices and inflation. Still, traders warned bonds would remain range-bound until the Budget, with details of the fiscal deficit target and revision, if any, in the market borrowing numbers for the current fiscal year being key.

The 10-year bond yield fell 8 basis points to close at 8.66%, marking the biggest single-day fall in yields since May 21.