Bond prices gain on ceasefire, fall in retail inflation

GOVERNMENT BOND PRICES rose on Tuesday, following a ceasefire with Pakistan and a favourable inflation data that bolstered rate cut bets.

- AGENCIES

The yield on the 6.79% government bond maturing in 2034 ended at 6.3289%, down 5 basis points from the previous close of 6.3750%, while the yield on the new 10-year, 6.33% bond maturing in 2035, ended at 6.2792%. Bond yields move inversely to prices.

"The rise in bonds (prices) towards day-end was due to better-than-expected inflation data," a trader with a state-run bank said.

Some are also anticipating the inclusion of the 6.79% bond maturing in 2034 in the Reserve Bank of India's upcoming open market purchase, which may have triggered buying, the trader added.