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Thursday, Mar 02, 2006


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Money & Banking - Govt Bonds


Bond prices fall

Our Bureau

Mumbai, March 1

In the bond market, traded volumes were thin and prices fell by 15 paise.

Dealers said the bond market was bearish due to uncertainty about whether the Rs 15,000-crore government securities auction would take place in March.

A dealer at a private bank said advance tax outflows of Rs 15,000-Rs 20,000 crore in March would further suck out the liquidity from the system. Hence, sentiment in the market is veered towards selling, he said. The 8.07-11 year-2017 paper opened at Rs 105.10 (7.38 per cent YTM) and ended at Rs 104.93 (7.40 per cent YTM). The 9.39-5 year-2011 paper opened at Rs 109.95 (7.11 per cent YTM) and closed at Rs 109.75 (7.15 per cent YTM).

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