Yields on government securities ended at record lows as investors bet the central bank will cut the bank rate by 25-50 basis points at its credit policy review next month.
Trading sentiment was also lifted by hopes that inflation will come down after a cut in fuel prices last night by state-run refiners.
The 10-year benchmark security yield ended at 5.9612 per cent, down from the previous close of 4.9908 per cent.
Call rates closed at 4.25-4.50 per cent.
Forex market
Market Sentiment: Bullish
The rupee ended firm for the first time in a week on Thursday on robust foreign fund inflows. The currency closed at 45.3475/3550 per dollar, up 0.76 percent from the previous close of 45.68/70.
The six-month dollar ended at a small premium of an annualised 0.03 percent compared with a discount of 0.85 percent at Wednesday
