Date REPO 7 DAY REPO 15 DAY REPO 1 MONTH REPO 2 MONTH REPO 3 MONTH REPO 6 MONTH REPO 9 MONTH

REPO 1 YEAR DISCOUNT RATE

8/9/2012 8/13/2012 11.83 10.51 11.83 10.51 11.73 10.5 11.55 10.47 11.44 10.47 11.49 10.45 11.54 10.48 11.57 10.5 12 10.5

Interest rates and bond yields have positive correlation. Interest rates and bond prices have inverse relationship. Bond prices and bond yields have inverse relationship. Reduction in interest rates positively affected bond prices Positive increase in bond prices negatively affects bond yields Thus, interest rates cause a decline in bond yields as a whole

Date REPO 7 DAY REPO 15 DAY REPO 1 MONTH REPO 2 MONTH REPO 3 MONTH REPO 6 MONTH REPO 9 MONTH REPO 1 YEAR DISCOUNT RATE

9/12/2013 9/16/2013 7.32 8.58 7.88 8.76 8.19 8.89 8.53 9.01 8.73 9.14 8.88 9.3 9.08 9.39 9.13 9.44 9 9.5

Generally, short term bonds are less risky than long term bonds The effect of change in monetary policy is more on short term bonds than on long term bonds Above figure shows this by large difference in short term bonds. As explained in last diagram, interest rates positively affect bond yields In above diagram, increase in interest rates caused increase in bond yields altogether.