|Subject||Bonds, rupee rise post surprise rate cut|
MUMBAI, MARCH 4 : Bonds, rupee, and shares gained sharply on Wednesday after a surprise rate cut by the Reserve Bank of India.
The central bank has lowered its policy repo rate by 25 basis points to 7.5 per cent on Wednesday, delivering its second cut this year on the back of easing inflation and a government commitment to fiscal discipline.
The 10-year benchmark bond yield fell to 7.64 per cent, the lowest since February 2 compared with its Tuesday’s close of 7.75 percent and the rupee rose to 61.7650/7750 to the dollar versus the previous close of 61.9150/9250.
The rupee rose as much as 61.65, its strongest since February 4.
The broader NSE index and BSE rose 1.4 per cent each to mark their record highs.
The one-year overnight indexed swap rate fell to 7.5357 per cent from the previous close of 7.76 per cent while the five-year swap rate was at 6.93 per cent from Tuesday’s close of 7.10 per cent.
Source : thehindubusinessline.com
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