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Money & Banking - Debt Market
Bond prices drop ahead of auction

Our Bureau

Mumbai, July 26

Bond prices were flat to weak ahead of the auction to be held on Thursday, with prices moving in the 10-15 paise range. "There was no major movement in the prices, only some minor adjustment. Oil prices too were around $73," said a dealer with a private bank. Bond prices may be flat till Friday, when the US will release its GDP figures. After that yields could firm up and could even touch 8.35 next week, the dealer said. "If the US GDP is weak or pro-bond, then yields will go down in India as well." The 7.59 per cent 10-year 2016 benchmark paper opened at Rs 95.88 (8.21 per cent YTM) and ended at Rs 95.73 (8.23 per cent YTM), against the previous close of Rs 95.82 (8.22 per cent YTM). The 7.37 per cent eight-year 2014 paper opened at Rs 95.65 (8.14 per cent YTM) and ended at Rs 95.58 (8.15 per cent YTM), against the previous close of Rs 95.74 (8.12 per cent YTM).

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