Bond yield eases by 05 bps

10-year G-sec Paper yield closes at 7.93% 

The yield on 10-year benchmark federal paper, 8.40% GS 2024, eased by 05 basis points to close at 7.93% compared to 7.98% at close in the previous trading session. The total trading volume on central bank's gilts trading platform stood Rs 27,540 crore. 

Bond yield eased on news wherein the finance ministry expects the RBI to cut interest rates before its policy review on 03 February 2015. 

The weighted average rate in the overnight call money increased to 8.20% compared with 6.87% in previous session. The call money rate hovered in the range of 5.20% to 8.50% with the volume of Rs 19,101.24 crore.