Mumbai: The Fixed Income Money Market and Derivatives Association of India (Fimmda) relaxed trading bands for government bonds for Thursday after some yields had hit their lower limits as part of a broad-based rally in debt markets.
Trading bands were doubled across all tenors for the day, the Fimmda website showed.
Trading beyond the lower circuit limit in active bonds such as the 8.83% 2041 bond, 8.33% 2026 bond and 8.97% 2030 bond had been briefly stopped. Yields dropped sharply across tenors on the back of dovish comments about US monetary stimulus from US Federal Reserve chairman Ben Bernanke.
At 9.57am, the benchmark 10-year bond yield was down 9 basis points at 7.43%.