Bond yield eased for a third day on speculation lower oil prices and slowing inflation will give the central bank room to cut borrowing costs further after China unexpectedly reduced interest rates on Tuesday.
The weighted average rate in the overnight call money eased to 7.03% compared with 7.11% in previous session. The call money rate hovered in the range of 5.75% to 7.30% with the volume of Rs 12411.39 crore.