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Bond yields rise

Dec 12 2012, 00:28 IST
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SummaryThe government bond yields rose on Tuesday after RBI bought less of the papers traders wanted to offload via open market operations.

The government bond yields rose on Tuesday after RBI bought less of the papers traders wanted to offload via open market operations. The central bank bought Rs 11,603 crore of government bonds as against Rs 12,000 croree scheduled. But dealers said the low acceptance of the 8.33% 2026 and 8.07% 2017 July bond, both well-traded papers, dented sentiment.

The Reserve Bank of India resumed open market operations last week after a five-month gap as cash in the banking system tightened beyond its comfort levels.

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