The yield on government bonds fell sharply on Tuesday, on the back of easing concerns over a possible US-led military action in Syria, drop in global oil prices as well as trade deficit in the April-August period.
The rupee rally also weighed positively on bond trading, treasury executives said.
The bond yield on 10-year benchmark (7.16 per cent 2023) eased to 8.47 per cent, down from 7.63 per cent on last Friday, according to data by Clearing Corporation of India.
On Friday (September 6), the government securities market sentiment had turned bearish in the wake of apprehensions over the upcoming non-farm employment data of the US. In fact, the cut-off at the auctions held on Tuesday were in line with expectations.
Call rate ends higher
Call money rates finished higher at the overnight call money market on Tuesday, due to good demand from borrowing banks. The overnight call money rate ended higher at 10.25 per cent from 9.00 per cent last Friday. It moved in a range of 10.40 per cent and 10.20 per cent
