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Money & Banking - Govt Bonds
Bond prices gain 25 paise

Our Bureau

Mumbai, May 8

Bond prices rose by around 25 paise on good liquidity in the system. Total traded volumes on the order matching system were Rs 2,515 crore (Rs 900 crore). Dealers said the marked increase in cash and cooling of call rates led to some buying in the market.

"There has been a visible increase in Government spending and Government security coupon inflows. With two auctions worth Rs 12,000 crore scheduled this week, the excess liquidity will be drained from the system," said a dealer at a private bank. The 8.07 per cent-10 year-2017 paper opened at Rs 99.52 (8.14 per cent YTM) and closed at Rs 99.77 (8.10 per cent YTM), against the previous close of Rs 99.48 (8.14 per cent YTM). The 7.38 per cent - 8 year-2015 paper opened at Rs 95.47 (8.14 per cent) and ended at Rs 95.62 (8.11 per cent YTM).

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