The Hindu Business Line : Rupee range-bound; bonds lacklustre

MUMBAI: All attention at the bond market on Tuesday was on the auction of the 2017 and 2034 bond papers, both of which were oversubscribed. Dealers said the cut-off rates were in line with market expectations.

The 8.07-per cent seven-year 2017 paper saw a cut-off rate of 7.48 per cent while the 7.50-per cent 29-year 2034 paper saw a cut-off rate of 6.95 per cent. The support of liquidity in the market was why this cut-off rate could be maintained, said the dealers

They said the 7.38-per cent 10-year 2015 benchmark paper was not being actively traded at the moment. The paper opened at Rs 102.15 (7.08 per cent YTM) and closed at Rs 102.30 (7.06 YTM). On Friday, the paper had closed at 102.40 (7.05 per cent YTM).

The currently active 2012 paper saw an upward price movement of about 30 paise. It opened at Rs 99.50 (6.94 YTM) and closed at Rs 99.91 (6.87 YTM).

The market saw trade volumes of Rs 2,100 crore. Nationalised banks and traders were the main players in the market on Tuesday.

The rupee strengthened against the dollar but during the day remained largely range-bound.

It opened at 43.76/77 against the US dollar, inching towards 43.75 and finally closing at the same level as the opening, 43.76/77. It closed at 43.82/83 on Friday.

In the forward premia market, the six-month premium closed at 1.83 (1.82 per cent) and the 12-month premium closed at 1.55 (1.55 per cent)

Call rates closed almost unchanged at 4.75/80 (4.80 per cent). In the one-day reverse repo under Liquidity Adjustment Facility, the RBI received and accepted 39 bids, amounting to Rs 31,725 crore. The CBLO market saw 179 trades, aggregating Rs 6,073.55 crore in the rate range of 4.40 per cent to 4.85 per cent.

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