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Money & Banking - Govt Bonds
Bond prices recover

Mumbai, Aug 21

Bond prices recovered by around 15 paise as inter bank call rates showed signs of cooling. Total traded volumes on the order matching system were at Rs 3,665 crore. Prices were range-bound during the day but ended higher than Friday’s close as call rates eased to 6.10-6.20 per cent. In the first reverse repo auction, under the the LAF, the RBI received and accepted 12 bids for Rs 10,190 crore. There were no repo bids. The CBLO market saw 436 trades aggregating to Rs 33,764.10 crore in the 5.75-6.50 per cent range.

Dealers said that concerns, however, remained about the global sub prime crisis and the volatile movements in domestic equity market. The 7.49 per cent-10 year-2017 paper opened at Rs 96.75 (7.98 per cent YTM) and closed at Rs 96.89 (7.95 per cent YTM), against the previous close at Rs 96.72 (7.98 per cent YTM).The 7.99 per cent-10 year –2017 paper opened at Rs 100.20 (7.96 per cent YTM) and closed at Rs 100.38 (7.93 per cent YTM), against the previous close at Rs 100.10 (7.98 per cent YTM). –

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