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Wednesday, Mar 29, 2006


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Money & Banking - Govt Bonds


Bond prices fall

Our Bureau

Mumbai, March 28

In the bond market, prices fell and the traded volumes were thin. Dealers said the fact that the RBI meeting with IBA sub-committee did not discuss the issue of a cut in the Cash Reserve Ratio to improve liquidity, dampened sentiment in the bond market. Dealers expect buying to pick up in the bond market tomorrow. Traders will buy in the market to prop up prices on revaluation concerns ahead of March 31, they said. The 8.07 per cent-11 year-2017 paper opened at Rs 104.70 (7.43 per cent YTM) and closed at Rs 104.67 (7.43 per cent YTM), almost the same level as Monday's Rs 104.7 (7.43 per cent YTM) The 9.39 per cent-5 year-2011 paper opened at Rs 109.697 (7.14 per cent YTM) and ended at Rs 109.66 (7.15 per cent YTM), slightly higher than Monday's close Rs 109.62 (7.16 per cent YTM).

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