Bond prices up as RBI announces no change in interest rates

Mumbai, Apr 18 (UNI) The Reserve Bank of India's (RBI) credit policy announced today brought back buying in the bond market as the Central Bank left the interest rates untouched.

''Traders were seen buying bonds, leading to a 10 paise rise in 10 year paper,'' a trader in the money market said.

''Earlier, traders had lightened their positions, expecting a 25 to 50 basis points rate hike,'' the trader added.

The 8.07 per cent 2017 paper traded at Rs 103.86, up by 71 paise.

The yield on the other hand was down by 10 basis points.

RBI, in its annual policy statement announced today, left the bank rate, cash reserve rate (CRR), repo and reverse repo rates unchanged at 6 per cent, 5 per cent, 6.5 per cent and 5.5 per cent, respectively.

The Central Bank also asserted its readiness to act in a timely and prompt manner on any sign of evolving circumstances, impinging on inflationary expectation.

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