Bond yield eases

10-year G-sec Paper yield closes at 7.77% 

The yield on 10-year benchmark federal paper, 7.72% GS 2025, eased by 02 basis points (bps) to 7.77% compared with 7.79% at close in the previous trading session. The total trading volume on central bank's gilts trading platform stood at Rs 48,100 crore. 

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.