MUMBAI (Reuters) - The bond market gained after the Reserve Bank of India (RBI) cut the key policy repo rate by 25 basis points while announcing measures to ensure more availability of cash in the banking system.
The 10-year benchmark bond yield fell as much as 9 basis points to 7.34 percent from levels just before policy announcement. The 10-year yield had closed at 7.41 percent on Monday.
Bonds gained also as the central bank separately announced bond purchases under the open market operation for 150 billion rupees ($15.13 million) on April 7.
The benchmark BSE Sensex fell 0.65 percent.
The rupee strengthened marginally to 66.09/10 per dollar compared with 66.12 before the announcement. The rupee had closed at 66.1975/66.2075 on Monday.
($1 = 66.0875 Indian rupees)
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(Reporting by Mumbai and New Delhi treasury desk)