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Money & Banking - Govt Bonds
Bonds rally as liquidity eases

Mumbai, Dec 31

The bond market continued with its rally and the yields fell by two basis points on Monday, prompted by the comfortable liquidity in the system. “The liquidity has given a fillip to the market,” said a bond dealer at a private bank. The yields have breached the 7.80 per cent mark and the market expects the yield to fall further. The total traded volumes on the order matching system were at Rs 9,215 crore (Rs 10,940 crore). The 7.99 per cent-10 year-2017 paper o pened at Rs 101.25 (7.80 per cent YTM) and closed at Rs 101.31 (7.79 per cent YTM) against the previous close of Rs 101.16 (7.81 per cent YTM). The 8.33 per cent-2036 paper opened at Rs 101.65 (8.18 per cent YTM) and closed at Rs 102.27 (8.12 per cent YTM) against the previous close of Rs 101.84 (8.16 per cent YTM).

— Our Bureau

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