The benchmark 7.16 per cent government security, which matures in 2023, closed sharply higher at Rs 91.79 from previous close of Rs 86.78. Yields on the security softened to 8.47 per cent from a close of 8.90 per cent on Tuesday.
The RBI’s liquidity easing measures helped the yields on government securities to ease, thereby helping banks recover their mark-to-market losses on their investments.
The call money rate, rate at which banks borrow from each other for short-term funding, closed lower at 10.25 per cent from Tuesday’s close of 10.30 per cent.
beena.parmar@thehindu.co.in