Informist mumbai

Prices of government bonds ended largely steady, recovering most of the day's losses as traders picked up gilts to sell at the Reserve Bank of India's INR 500 billion open market purchase of gilts Tuesday, dealers said. A record supply of state bonds on Tuesday and profit booking after a stellar week had weighed on gilt prices through the day.

The 10-year benchmark 6.79%, 2034 bond ended at INR 101.12, or 6.63%, yield Monday, against INR 101.15, or 6.62% yield, Friday. The benchmark yield last week fell over 7 basis points, notching its best week since the end of November. On Monday, the price of the benchmark 10-year bond was volatile, swinging from losses to recovery, but price movements across most tenures were calmer ahead of two key auctions Tuesday.