The Hindu Business Line : Bond prices fall

Bond prices fell due to selling pressure, prompted by the lack of liquidity and the industrial production data for December showing a slowdown to 7.6 per cent from 13.4 per cent last year.

The total traded volumes on the order matching stood at Rs 7,140 crore (Rs 12,645 crore). "There was some selling today, due to which prices fell. But the undertone for the bond market continues to be bullish as there are no more scheduled auctions," said a bond dealer with a private sector bank. The general feeling that interest rates have started softening and may see further reduction by April is also bullish for the bond market.

The 7.99 per cent-9 year-10 year paper opened at Rs 103.65 (7.44 per cent YTM) and closed at Rs 103.58 (7.45 per cent YTM), against the previous close of Rs 103.66 (7.44 per cent YTM). The 8.33 per cent -28 year-2036 paper opened at Rs 106.82 (7.73 per cent YTM) and closed at Rs 106.7 (7.41 per cent YTM), against the previous close of Rs 106.83 (7.73 per cent YTM). - Our Bureau

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