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Tuesday, Mar 07, 2006


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Money & Banking - Govt Bonds


Bearish sentiment in bonds

Our Bureau

Mumbai, March 6

The bearish sentiment continued in the bond market. The traded volume was low and prices fell by around 10 paise. Dealers said that the uncertainty about the Rs 15,000-crore auction has affected the buying appetite in the market. "Besides the auction, advance tax outflows to the tune of Rs 25,000 crore will further reduce the liquidity in the system. In such a scenario, sentiment is very negative", said a dealer at a private bank.

The 9.39 per cent - 5 year-2011 paper opened at Rs 109.24 (7.26 per cent YTM) and closed at Rs 109.15 (7.28 per cent YTM).The 8.07-11 year-2017 paper opened at Rs 104.59 (7.44 per cent YTM) and closed at Rs 104.32 (7.48 per cent YTM).

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