India’s 10-year bonds gained for the first time in five days on speculation that yields near the highest level since 2008, would attract investors. The yield on the 7.80 per cent, 10-year note climbed to 8.47 per cent on Monday. The yield on the 7.8 per cent note due April 2021 slipped two basis points, or 0.02 percentage point, to 8.43 per cent at close in Mumbai
RUPEE GAINS
The rupee on Monday appreciated by eight paise to close at 45.08/09 against the dollar, following a sustained sale of dollars amid renewed capital inflows. The dollar index was trading near a two-week low against its major rivals on Monday in the Asian market
CALL RATE FALLS
The call rate dropped sharply on the overnight call money market on Monday on excess supply in the banking system. The overnight call money rate tumbled to 6.20 per cent from 7.45 per cent last Friday.