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Money & Banking - Debt Market


Bond prices up as liquidity eases

Our Bureau

Mumbai, March 23

In the bond market, prices edged up slightly due to the marginal easing of liquidity. Dealers said the marginal reduction in the borrowing of banks from RBI through the repo window and the call rate easing below 7 per cent improved buying interest. "The worst is over after the advance tax outflows. However, the market is awaiting the announcement of the government auction calendar schedule," said a dealer. In a statement made to reporters, the Finance Minister said that the central bank would intervene to manage the tightness in liquidity next week. The 9.39-5 year-2011 paper opened at Rs 109.36 (7.22 per cent YTM) and closed at Rs 109.55 (7.18 per cent YTM), up from Wednesday's Rs 109.40 (7.21 per cent YTM). The 8.07 per cent-11 year-2017 paper opened at Rs 104.75 (7.42 per cent YTM) and closed at Rs 105.08 (7.38 per cent YTM), higher than the previous close of Rs 10

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