Government bond prices showed a mixed trend due to uneven demand and supply transactions while call rate ended steady at 3.30% on the overnight call money market here today in the absence of market-moving factors.
The 10-year benchmark paper, 6.90% ending 2019 closed at Rs 99.90 implying a yield of 6.91%. The turnover on NDS order matching system was noted at Rs 4,190 crore. However, the overnight call money rate finished steady at 3.30%.
The Reserve Bank of India (RBI) under the liquidity adjustment facility (LAF) mopped up 1, 26,660 crore from 44 bids at the one day reverse repo auction at the rate of 3.25%.
Meanwhile, the rupee dropped as a lower stock market and the dollar?s rebound against major currencies prompted investors to take profits a day after it posted its biggest one-day rise in two months.
It ended at 48.42/43 per dollar, 0.4% weaker than 48.21/22 at close on Monday when it rose as much as 1.1%.
?Dollar/rupee is well bid because of the fall in the stock market and the dollar?s rebound after last night?s weakness against the majors,? said the head of trading at a state-run bank.
Capital flows into, and out of, the stock market are a key driver for the rupee.
The benchmark stock index dropped nearly a percent on Tuesday, snapping a two-day rise.