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Money & Banking - Govt Bonds
Bond prices unchanged

Mumbai, Aug 13

Bond prices ended flat as there is no change in the size of the market stabilisation scheme auction (MSS) for this week. Total traded volumes on the order matching system were at Rs 1,650 crore. The RBI on Friday announced the auction of the 5.48 per cent- 2009 paper for Rs 4,000 crore under the MSS. “The size of the auction remains the same as in the previous week. With the RBI systematically draining liquidity from the system, market sentiment remains lacklustre,&# 8221; said a dealer at a private bank. As per the auction calendar, a Rs 9,000 crore government security auction is scheduled for next week, which will add to the outflow of excess cash from the system, dealers said. The 7.49 per cent-10 year-2017 paper opened at 96.85 (7.96 per cent YTM) and closed at Rs 96.72 (7.98 per cent YTM), against the previous close at Rs 96.71 (7.98 per cent YTM). The 7.99 per cent- 10 year-2017 paper opened at Rs 100.34 (7.94 per cent YTM) and closed at Rs 100.20 (7.96 per cent YTM), against the previous close at Rs 100.17 (7.96 per cent YTM).

— Our Bureau

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