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Money & Banking - Govt Bonds
Bond prices decline

Mumbai, Nov. 15

Bond prices fell by around 5-10 paise as liquidity remained under pressure. Total traded volumes on the order matching system were at Rs 1,045 crore (Rs 3,250 crore). Dealers said that prices fell as inter bank call rates continued to be higher at 8 per cent and liquidity remained a concern. Banks borrowed Rs 21,000 crore from the RBI under the repo auction. Reports on British Bank Barclays taking a hit on its profits due to sub-prime issues also dampened sentiment.

The 7.99 per cent-10 year-2017 paper opened at Rs 100.81 (7.66 per cent YTM) and closed at Rs 100.67 (7.89 per cent YTM), against the previous close at Rs 100.75 (7.87 per cent YTM). The 7.49 per cent-10 year-2017 paper opened at Rs 97.30 (7.90 per cent YTM) and closed at Rs 97.27 (7.90 per cent YTM), against the previous close at Rs 97.32 (7.89 per cent YTM). - Our Bureau

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