Financial Daily from THE HINDU group of publications
Friday, May 20, 2005
Financial Daily from THE HINDU group of publications Friday, May 20, 2005 |
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Money & Banking
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Govt Bonds Bonds bullish; rupee firms up Our Bureau
MUMBAI: Bond prices rose by 40-80 paise across medium- to long-term papers as declining crude oil prices, which touched a low of $46.91 per barrel, eased concerns about domestic inflation. A dealer at a private bank said yields in the US bond market had also gone down by four basis points on Wednesday. The liquidity of Rs 18,000 crore in the market despite huge outflows in the Rs 7,300-crore State loan auction also brought comfort to the market, dealers said. The 7.38-10 year-2015 benchmark paper was traded at Rs 102.50 (7.03 per cent YTM) and closed at Rs 102.30 (7.06 per cent YTM), up by about 66 paise from Wednesday's Rs 101.64 (7.16 per cent YTM). The 8.07-12 year 2017 paper was up by almost 90 paise and was the most active paper of the day. It was dealt at Rs 106.50 (7.23 per cent YTM) and ended at Rs 106.43 (7.24 per cent YTM) against Wednesday's close of Rs 105.64/67 (7.339 per cent YTM). The 7.55-5 year-2010 paper closed at Rs 103.25 (6.77 per cent YTM), up from Wednesday's Rs 102.98 (6.83 per cent YTM). Call rates were steady at 4.95-5.05 per cent. In the one-day reverse repo, under the liquidity adjustment facility, the RBI received and accepted 32 bids amounting to Rs 18,080 crore. The CBLO market saw 153 trades, aggregating Rs 6,436.55 crore, in the rate range of 4.92-5.05 per cent. The rupee traded in the range of 43.42-43.48. The domestic currency opened higher at 43.42 against the dollar due to the overnight strengthening of the euro. It was traded at the level of 43.41 and closed at 43.47/48, a shade higher than Wednesday's close of 43.49/50. A chief forex dealer at a State-run bank said that in the initial part of the day there was good supply due to which the rupee appreciated. Later, buying of dollars by corporates pushed the rupee down to levels of 43.47/48. The forward premia market opened soft and by and large was flat. As the rupee strengthened, there was some interest, the dealer said. The 6-month premium closed at 1.42 per cent (1.5) while the 12-month premium closed at 1.3 per cent (1.42 per cent).
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