The central bank kept its key policy repo rate unchanged as widely expected, but warned about inflationary risks should a shortfall in monsoon rains spark a surge in food prices.
The benchmark 10-year bond yield rose 4 basis points to 8.77 percent, while the new 10-year bond yield advanced 4 bps to 8.54 percent.
The NSE index briefly fell 0.2 percent. It had been flat before the policy outcome.
The partially convertible rupee trimmed gains to 60.88 per dollar from 60.83 before the policy outcome. It had closed at 60.93/94 per dollar on Monday.