Bond Yield Ease On The Rate View, Re Ends 44.24

Indian bond yield fell slightly on Wednesday as investors veered to a view that the RBI may rely on draining cash than raising interest rate to curb inflation. The yield on the benchmark 10 year ended at 7.96%, compared with the previous close at 7.97%. In the inter bank call market, the call rate hovered in the range of 5.20%- 5.40%. The RBI through its Liquidity Adjustment Facility (LAF) absorbed the recently capped limit of Rs3,000cr against the subscription offer of Rs37,175cr by banks on Wednesday. The rupee ended lower on Wednesday but pared early losses as investors shrugged off a fall in local stock on expectations for renewed flows into the country. The rupee ended at 44.245/265 per dollar, up from an early low of 44.365, but off Tuesday''s close of 44.205/220.