On Tuesday, bond yields erased early gains to end lower as expectations grew that the central bank would reduce interest rates further after a top policy maker said that he saw some scope for more cuts.
The benchmark 10-year bond yield ended at 7.68%, off an intraday low of 7.67%, but below Monday?s close of 7.72%. In early trade, it touched the day?s high of 7.75%. Volumes stood at Rs 6,620 crore. Meanwhile, overnight call money rates ended at 7.4-7.5%, lower than 7.5-7.75% on Monday, which traders said indicated adequate cash conditions.
At the same time, rupee breached key Rs 48 against the dollar, ended down against the dollar as most banks persistently bought greenback to meet demand from foreign institutional investors after local shares plunged over 6% on Tuesday, dealers said. The rupee ended at Rs 48.12 per dollar compared with Rs 47.38 per dollar on Monday. Intraday, rupee moved in a wide band of Rs 47.44-48.15 per dollar.
?Agencies