The bond yield eased to a two-year low, after the RBI surprised investors with bigger-than-expected cut in borrowing costs by 50 bps and eased curbs on foreign ownership of local debt.
The weighted average rate in the overnight call money eased to 6.78% compared with 7.62% in previous session. The call money rate hovered in the range of 5.25% to 7.60% with the volume of Rs 18,161.36 crore.