Bonds, rupee up on Fed meet outcome

MUMBAI (Reuters) - Indian bond yields dropped while the rupee rose on Thursday after the U.S. Federal Reserve raised interest rates in line with expectations while keeping the outlook unchanged.

The government's announcement of 200 billion rupees worth of bond buyback also helped sentiment for domestic bonds.

The benchmark 10-year bond yield was down 3 basis points at 7.14 percent by 0335 GMT, while the partially convertible rupee was at 64.29 per dollar versus its previous close of 64.4450.

(Reporting by Swati Bhat and Savio Shetty; Editing by Biju Dwarakanath)