The Hindu Business Line : Bond prices up on buying interest

Bond prices moved up by around 20 paise on buying interest. Total traded volumes on the order matching system were at Rs 4,750 crore (Rs 4,065 crore). Dealers said that the cut-off yield on the 182 day T-bill auction was better than expected. The price of global crude also eased slightly to $100.31 per barrel. This prompted traders to start buying in the market. "Traders do not want to drastically cut down on their positions as they expect another 50 basis point cut in interest rates in the US Fed meeting later this month," said a dealer at a private bank.

The 7.99 per cent-9 year-2017 paper opened at Rs 102.70 (7.58 per cent YTM) and ended at Rs 102.94 (7.54 per cent YTM), against the previous close at Rs 102.71 (7.58 per cent YTM). There was, however, some selling seen in the 8.33 per cent-28 year-2036 paper. Traders said that a few players who have large positions in this paper may have cut their exposures. The 8.33 per cent-28 year-2036 paper opened at Rs 103.50 (8.01 per cent YTM) and ended at Rs 103.77 (7.99 per cent YTM), against the previous close at Rs 103.41 (8.02 per cent YTM). - Our Bureau

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