The Hindu Business Line : Bond prices up 30 paise

Bond prices rose by around 30 paise reacting to the 0.5 percentage point cut in interest rates by the US Federal Reserve. Total traded volumes on the order matching system were at Rs 8,530 crore. “Bond prices rose during the day as the cut by the US Federal Reserve has renewed hopes of softening interests rates in India as well. Besides, dealers are finding this a good time to buy since they think that bond yields have peaked out,” said a dealer at a private ba nk. “The 10-year yield has peaked from a low of 7.3 per cent to 7.5 per cent in recent times,” he added. Market participants said that bond yields in the US did not react much as the cut in interest rates was discounted. The 7.99 per cent 9-year-2017 opened at Rs 103.08 (7.53 per cent YTM) and ended at Rs 103.17 (7.51 per cent YTM), against the previous close at Rs 102.85 (7.55 per cent YTM). The 8.33 per cent 28-year-2036 paper opened at Rs 105.10 (7.88 per cent) and ended at Rs 105.74 (7.82 per cent YTM).

— Our Bureau

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