Business Daily from THE HINDU group of publications
Friday, Dec 14, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Friday, Dec 14, 2007 ePaper | Mobile/PDA Version |
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Money & Banking
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Govt Bonds Bonds listless on tight liquidity Mumbai, Dec 13 The bond market was dull and flat, with hardly any volumes, due to tight liquidity. The auction of two Government papers scheduled for December 14 worth Rs 7,000 crore is also adding to the bearish sentiment in the market, said a bond dealer with a private bank. "There is supply of Government papers, but no money. The good thing is that even after the rate cut by the US Federal Reserve, the market has been able to hold onto its levels, even though the situation is precarious," he said. The total trading volumes on the order matching system were Rs 2,145 crore. The 7.99 per cent-10 year-2017 paper opened at Rs 100.73 (7.88 per cent YTM) and closed at Rs 100.67 (7.89 per cent YTM) against Wednesday's close of 7.88 per cent YTM. The 8.33 per cent-29 year-2036 paper opened at 100.9 (8.25 per cent YTM) and closed at Rs 100.8 (8.26 per cent YTM) against the earlier close of 8.25 per cent YTM. About the likely reaction of the RBI to the US rate cut, the dealer said, "The RBI is primarily concerned about money supply, which is not up to its target and inflation, which is expected to rise. So a rate cut in the immediate future seems unlikely." - Our Bureau
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