Prices of long-term papers fell by 50 paise while, in the medium term, they slipped by 20-25 paise.
The market turned to selling mode after the RBI announced a higher cut off rate of 6.25 per cent for the 28-year paper which was trading at par in stray deals.
Call money rates were comfortable at 4.25 per cent.
Repo subscriptions touched Rs 32,000 cr.
The ten-year benchmark 7.27 per cent 2013 went up to 5.21 per cent after the announcement of the cut off rate.
Forex market
Market Sentiment: Bullish
The spot rupee remained flat through out the day at 45.62/63 to a dollar.
Forward premiums also remained ranged with six-month premium closing at -0.19 per cent.
Outlook
The spot rupee is expected to open at 45.62/65 to a dollar on Friday.
