Mumbai, Apr 18 (UNI) The bond prices moved up today after RBI's neutral stance on interest rates.
''Traders were seen buying bonds immediately after the announcments, 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 bond market reacted positively to the neutral stance and 10-year benchmark bond yield dipped by about 8-10 basis points after the RBI credit policy announcement,'' said Mohan Shenoi, Group Head Treasury, Kotak Mahindra Bank.
The 8.07 per cent 2017 paper closed at Rs 104.15, up by more than a rupee, while the yield was down to 7.50 per cent.
The 7.59 per cent 10-year government paper traded at Rs 100.20, while the yield was at 7.41 per cent.
Call Money rate closed steady near the reverse repo rate of 5.50 per cent as the Reserve Bank of India(RBI) Governor Y V Reddy made no changes in the repo rates.
Meanwhile, RBI absorbed Rs 55,970 crore through the one-day reverse repo auctions.
In the first one-day reverse repo auction, RBI absorbed Rs 9,180 crore from the money market through 19 bids received at 5.50 per cent.
In the second one-day reverse repo auction, RBI absorbed Rs 46,790 crore from the money market through 46 bids received at 5.50 per cent.
RBI didn't inject any money in the money market through repo auctions.
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