MUMBAI (August) - Bond yields rose on Tuesday after the central bank cut banks' statutory liquidity ratio and their held-to-maturity ratio by half a percentage point each.
The RBI kept its key policy repo rate unchanged as widely expected, but warned about inflationary risks should a shortfall in monsoon rains spark a surge in food prices.
The benchmark 10-year bond yield rose 4 basis points to 8.77 percent, while the new 10-year bond yield IN084024G=CC advanced 4 bps to 8.54 percent.
The Nifty briefly fell 0.2 percent. It had been flat before the policy outcome.
The partially convertible rupee trimmed gains to 60.88 per dollar from 60.83 before the policy outcome. It had closed at 60.93/94 per dollar on Monday.
(Reporting by Swati Bhat; Editing by Subhranshu Sahu)