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Wednesday, Jan 10, 2007
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Money & Banking - Govt Bonds
Bond prices fall on profit booking

Our Bureau

Mumbai, Jan. 9

Bond prices fell by around 10 paise on profit-booking. Total traded volumes on the order matching system were lower at Rs 2,875 crore (Rs 7,420 crore). Market participants were closely monitoring the tightening liquidity in the system, following the hike in the cash reserve ratio. Banks have pruned their holdings of gilts under the Statutory Liquidity Ratio to just a shade above 25 per cent (the minimum is 25 per cent) and large positions are not being taken, said a dealer a private bank.

The 8.07-10 year-2017 paper opened at Rs 104.10 (7.48 per cent YTM) and closed at Rs 104.02 (7.49 per cent YTM), lower than Monday's Rs 104.12 (7.48 per cent YTM). The 7.59-9 year-2016 paper opened at Rs 100.65 (7.49 per cent YTM) and ended at Rs 100.52 (7.50 per cent YTM), against Monday's Rs 100.63 (7.49 per cent YTM).

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