The Hindu Business Line : Bond prices tumble in jittery market

MUMBAI: Apprehensions over an early US Fed rate hike, coupled with domestic political uncertainties, drove bond prices down by up to 65 paise across some maturities in a jittery Government securities market on Friday.

The 8.07 per cent 2017 paper opened at Rs 123.60 but fell to Rs 122.95 at close.

The 7.37 per cent 2014 paper opened at Rs 116.60 but got dealt lower at Rs 116.40, while the 6.35 per cent 2020 paper opened at Rs 106.17 and slipped to close at Rs 105.80.

Dealers said that the change of guard at the Centre has fuelled concerns over the future of economic reforms.

The bearish sentiment in the equities market along with the sharp fall in the rupee has thrown the debt market into a cautious mode.

Call rates remained at around 4.25 per cent in the inter-bank market.

In the seven-day repo under LAF, the Reserve Bank of India (RBI) received and accepted 41 bids amounting to Rs 20,050 crore at the rate of 4.50 per cent.

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