MUMBAI Dec 18 Indian bond prices gained on
Tuesday after the Reserve Bank of India kept both interest rates
and the cash reserve ratio unchanged as the central bank
signalled a shift to focus on growth, raising expectations for a
rate cut as early as January.
The 10-year bond yield fell 3 basis points
to 8.14 percent from levels before the decision after initially
gaining 1 bp.
The RBI's decision to also keep the cash reserve ratio on
hold has raised expectations for more bond purchases via open
However, the BSE stock index fell 0.2 percent as of
0538 GMT. Banks were among the leading decliners, with State
Bank of India down 1.8 percent.
(Reporting by Mumbai markets team)