Bond yield eased as traders remained on side-lines and preferred to store cash ahead of end of FY14. However, the sentiments remained cautious as the traders are awaiting the details of government market borrowing for first half of next fiscal.
The weighted average rate in the overnight call money eased to 8.66% compared to 8.89% in the previous session. The call money rate hovered in the range of 7.25% to 9.00% with the volume of Rs 17853.71 crore.
The State Development Loan auction held today was fully subscribed under all states. The States of Andhra Pradesh and Tamil Nadu retained additional subscription worth Rs 250 crore and Rs 300 crore respectively.