Government bond prices ended lower after the Reserve Bank of India (RBI) sold Rs 12,000 crore of fresh papers on Friday, erasing most of the week's gains. Yields on the 10-year benchmark government bond closed at 8.37 per cent, higher by four basis points over yesterday's close and lower by one basis point over the previous week's close.
The price of the 10- year benchmark government bond closed at Rs 102.8 on Friday. Bond prices rose to a high of Rs 103.41 on Tuesday, as a shift in policy stance by RBI raised hopes of possible rate reversals. The declining food inflation and bond purchases through open market operations kept a check on rising yields during the week.