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Our Bureau

Mumbai, May 30

Bond prices fell marginally in anticipation of action from RBI. Total traded volumes on the order-matching system were Rs 2,325 crore (Rs 3,120 crore). "The sentiment was bearish and the volumes were low. Bond redemptions worth Rs 21,000 crore and the RBI's intervention in the forex market have shored up liquidity in the system and has become a cause for concern for traders," said a dealer at a private bank.

Market participants are wary of action from RBI either in the form of a large market stabilisation scheme auction or an increase in CRR, to drain out cash. The short-term excess cash aided a rally in the three-month treasury bills to a yield of 7.10 per cent from the cut-off yield of 7.4 per cent. The 8.07 per cent-10 year-2017 paper opened at Rs 99.85 (8.09 per cent YTM) and closed at Rs 99.78 (8.10 per cent YTM), against the previous close at Rs 99.82 (8.09 per cent YTM). The 7.38 per cent - 10 year-2017 paper opened at Rs 95.50 (8.13 per cent YTM) and closed at Rs 95.55 (8.13 per cent YTM), against Tuesday's close at Rs 95.50 (8.13 per cent YTM).

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