ET:Bond yields down on stronger rupee, bargain-hunting
Bonds recovered from a recent sell-off, with the benchmark 10-year bond yielded down 7 basis points to 8.59 per cent after rising 24 bps over the previous three sessions.
Traders cited some bargain-hunting after the recent sharp falls and gains in the rupee after the US Congress averted a default by clinching a debt deal.
The US debt negotiations being cleared spured gains in bonds and the rupee, which was trading at 61.3600/3750 to the dollar versus 61.8350/8450 on Tuesday.
"The rupee was much better and traders were also sitting light for two-three days, so we were seeing some buying," said a dealer with a foreign bank.
Still, traders said bonds could remain under pressure given expectations that the RBI will raise the repo rate by 25 bps this month.
