FIMMDA removes trading bands for govt bonds on Wednesday

India's fixed income association said there would be no trading bands for government bonds and other securities on Wednesday, a second day in a row after the Reserve Bank of India (RBI) announced measures to curb the rupee's slide and sent bond yields surging.

A key measure coming into effect from Wednesday is the total funds available under the RBI's repo window will be capped at 1 percent of banks' deposits.

The benchmark 10-year bond yield surged 52 basis points on Tuesday to close at 8.07 percent, its biggest single-day rise since January 7, 2009, when the yield had risen 71 bps following an unexpected increase in the government borrowing programme.