The Hindu Business Line : Bond prices close higher

Bond prices traded in a range of 5-10 paise and closed higher as the mood in the market turned bullish after the heavy losses last week. Prices went up and traded in a range before closing slightly higher. "It was more of a consolidation after the market went down tremendously last week. It is not based on any positive news," said a bond dealer with a private bank. The bond market has already factored in a rate cut by the US Federal Reserve in its meeting later today, the dealer said.

The total traded volumes on the order matching system were at Rs 2,990 crore (Rs 1,450 crore). The 7.99 per cent-9 year-2017 paper opened at Rs 102.45 (7.61 per cent YTM) and closed at Rs 102.63 (7.58 per cent YTM) against the previous close of Rs 102.39 (7.62 per cent YTM). The 8.33 per cent-2036 paper opened at Rs 102.49 (8.10 per cent YTM) and closed at Rs 102.59 (8.09 per cent YTM) against the previous close of Rs 102.30 (8.12 per cent YTM).

As there is no clear view of inflation and liquidity, the bond market is likely to remain at these same levels for the next two to three days, the dealer said. - Our Bureau

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