The total trading volume on central bank's gilts trading platform stood at Rs 46670 crore.
Bond yield eased on comments from finance ministry that this year fiscal borrowing may be curtailed, raising hopes of lower deficit.
The weighted average rate in the overnight call money increased to 8.75% compared to 8.64% in previous session. The call money rate hovered in the range of 8.60% to 8.80% with the volume of Rs 19649.29 crore.