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Money & Banking - Govt Bonds
Bond prices decline

Our Bureau

Mumbai, Feb. 22

Bond prices fell by about 27 paise and yields rose by five basis points as dealers felt the increased liquidity in the system may tempt the RBI to raise short-term rates or cash reserve ratio. Total traded volumes in the order matching system dropped significantly to Rs 2, 030 crore against Wednesday's Rs 6,135 crore.

The 7.37-7 year-2014 paper (most actively traded paper) opened at Rs 96.85 (7.95 per cent YTM) and closed at Rs 96.63 per cent (7.99 per cent YTM) against Wednesday's Rs 96.91 (7.94 per cent YTM). The 8.07 per cent-10 year-2017 paper opened at Rs 100.95 (7.92 per cent YTM) and closed at Rs 100.73 (7.96 per cent YTM) against the previous close of Rs 101 (7.92 per cent YTM).

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