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 increased to 6.86% compared with 6.78% in previous session. The call money rate hovered in the range of 5.60% to 7.20% with the volume of Rs 18,833.94 crore.