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Our Bureau

Mumbai, Dec. 28

Bond prices edged down by around nine paise on tight liquidity conditions. The total traded volumes on the order marching system continued to be low at around Rs 730 crore (Rs 690 crore on Wednesday), against the average of Rs 2,000 crore-Rs 3,000 crore. Dealers said that there were few players in the market and little trading interest.

Foreign banks are closing their positions for the year and hence not actively trading in the bond market, said a dealer at a private bank. Market participants expect the liquidity condition to ease once the advance tax collection of Rs 35,000 crore comes back to the system. A dealer said the bond market could get jittery ahead of the Rs 9,000 government security auction scheduled for early January.

The market sentiment could also be impacted by the inflation figures, which will be released on Friday. The 7.59 per cent 10-year-2016 paper opened at Rs 99.70 (7.63 per cent YTM) and closed at Rs 99.70 (7.63 per cent YTM), against Wednesday's Rs 99.79 (7.62 per cent). The 8.07 per cent 11-year-2017 paper opened at Rs 103.18 (7.61 per cent YTM) and closed at Rs 103.09 (7.62 per cent YTM), against Wednesday's Rs 103.15 (7.61 per cent YTM).

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