The Hindu Business Line : Bonds choppy amid low volumes

The bond market was choppy, with very low volumes as there was no trading interest. Although liquidity was comfortable, inflation, which crossed 5 per cent continues to be a big concern. The expectation is that the RBI is unlikely to cut interest rates, in order to keep inflation under check, said dealers. As the mood in the bond market was mostly bearish, yields on the Government securities went up by about 10 bps. Total traded volumes on the order matching system were at Rs 2,220 crore.

"The bond market is likely to stay rangebound for a couple of more days," said a bond dealer with a private bank. The 7.99 per cent-9 year-2017 paper opened at Rs 102.7 (7.58 per cent YTM) and touched a low of Rs 102.38 (7.63 per cent YTM). It finally closed at Rs 102.47 (7.61 per cent YTM). The 8.33 per cent-29-2036 paper opened at Rs 103 (8.06 per cent YTM) and touched a low of Rs 102.27 (8.12 per cent YTM) before closing at Rs 102.51 (8.1 per cent YTM). - Our Bureau

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