The Hindu Business Line : Bond prices fall around 30 paise

Bond prices fell by around 30 paise as traders turned jittery ahead of the announcement of the 6-monthly government securities auction calendar. The total traded volume on the order matching system was Rs 1,840 crore.

Dealers said the auction calendar could be declared soon and traders were hoping there would not be any more auctions in September. "The auction calendar and advance tax outflows of Rs 25,000 crore expected later this month have made market participants nervous. Last year, a liquidity crunch had turned the market bearish," said a dealer at a private bank.

The Reserve Bank of India on Friday announced the auction of 182-day government treasury bills for a notified amount of Rs 1,500 crore (Rs 500 crore under the regular calendar and Rs 1,000 crore under Market Stabilisation Scheme) and 91-day treasury bill for Rs 2000 crore (Rs 500 crore under regular auction and Rs 1,500 crore under MSS). The auctions will be held on September 20. The 7.59 per cent-10 year-2016 paper opened at Rs 98.5 (7.81 per cent YTM) and closed at Rs 98.42 (7.83 per cent YTM), against Thursday's Rs 98.59 (7.7996 per cent YTM).

The 8.07 per cent-11 year-2017 paper opened at Rs 101.46 (7.86 per cent YTM) and ended at Rs 101.36 (7.87 per cent YTM), lower than Thursday's close at Rs 101.54 (7.84 YTM).

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