The Hindu Business Line : Rupee moves up; bonds decline

A dealer with a private bank said that there was good dollar demand from oil companies in the first half of the trade, but supplies came in later bringing the dollar down. There was some profit taking in the forward premia market. The 12-month premium was at 1 per cent (0.93 per cent) and the 6-month premium was at 1.03 (0.9 per cent).

In the bond market volumes were thin as the market was expecting an auction announcement any time, said dealers. Prices opened about 10 paise higher, but lack of buying interest pulled prices down and they closed about 5 paise lower, said a dealer with a private bank.

The 7.27 8-year 2013 paper opened at Rs 102.50 (6.85 per cent YTM), touched a high of Rs 102.62 (6.84 per cent YTM), but ended at Rs 102.47/50 (6.87 per cent YTM), lower than Tuesday's close of Rs 102.54 (6.85 per cent YTM). The 7.55 per cent 2010 opened at Rs 103.97 (6.56 per cent) and closed at Rs 103.90/95 (6.58 per cent YTM).

The 10-year benchmark was dealt at Rs 102.45 (7.03 per cent YTM) against Tuesday's level of Rs 102.90 (6.97 per cent). In the call money market, though deals were executed below 4.5 per cent, the rates closed between 6-6.25 per cent (3-3.05 per cent). In the one-day reverse repo auction, the RBI received and accepted 55 bids amounting to Rs 50,610 crore. In the CBLO market, 247 trades were put through in the range of 4-4.30 per cent, for Rs 8,117.80 crore.

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