The Hindu Business Line : Bleak day for bond market

The reasons for this one-way movement were liquidity shortage, high oil price, inflation worries and announcement of a state loan auction of Rs 6,000 crore, said bond dealers. Prices fell by around 45 paise and touched levels seen almost a month ago.

“Most dealers have adopted a wait-and-watch situation. They are waiting for the market to stabilise,” said a bond dealer with a private bank. Another dealer said that these levels may be the bottom and bond prices may only see an improvement from here. “Most banks are holding bonds at high levels because if they sell now they will book losses. We need to see how long their holding power will last,” said the dealer.

Total traded volumes on the order-matching system were at Rs 4,790 crore (Rs 5,245 crore). The 7.99 per cent-9 year-2017 paper opened at Rs 102.65 (7.59 per cent YTM) and closed at Rs 102.43 (7.62 per cent YTM) against the previous close of Rs 102.89 (7.55 per cent YTM). The 8.33 per cent opened at Rs 104.55 (7.92 per cent YTM) and closed at Rs 104.37 (7.93 per cent YTM) against the previous close of Rs 105.18 (7.87 per cent YTM).

— Our Bureau

More Stories on : Debt Market

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Stocks tumble as oil touches $100 again

Re breaches 40 on dollar shortage

Infosys launches Finacle version 10

Metlife infuses Rs 350 cr to fund growth plans

S&P gets nod to set up wholly owned subsidiary

Bleak day for bond market

Funds get cheaper; SBI drops rates again

Union Bank bid to cut turnaround time

Union Bank, Bank of India cut lending rates by 50 bps

Oil bonds may reduce heat of high crude prices

Call rates end lower

Public sector banks raise bulk deposits at 9% plus

Kamesh Goyal is new Allianz regional CEO