MUMBAI (Reuters) - India’s benchmark 10-year bond yield briefly rose 5 basis points to 8.70 percent from pre-policy levels after the central bank announced a 50 basis points cut in banks’ statutory liquidity ratio starting June 14.
Yields, however, retreated on the back of the dovish policy tone, dealers said. Yield had ended at 8.66 percent on Monday.
The partially convertible rupee briefly trimmed losses to 59.16 per dollar from 59.20 beforehand.
The BSE Sensex extended gains and was up 0.3 percent from being flat before the policy review.
Reporting by Swati Bhat; Editing by Anupama Dwivedi