Bonds rally, rupee declines

Government bond prices rallied after the release of inflation data, but gains were curbed on profit-taking.

The yield on the 7.38% 2015 bond dropped to 6.55% as against the previous close of 6.57%, but off the day's low of 6.53%.

Inflation based on the wholesale price index dropped to 6.73% for the week ended December 11, 2004 as against the previous week level of 7.02%.

The spot rupee, which touched a high of 43.65 per dollar in early deals, was quoted around 43.81 per dollar in early noon deals as against the last close of 43.77 per dollar.