The Hindu Business Line : Bond prices fall

Bond prices fell by over 25 paise as concerns about higher inflation caused traders to sell in the market. Total traded volumes were at Rs 3,225 crore (Rs 2,065 crore). Traders were jittery ahead of the inflation figures being released on Friday. “The market expects inflation to be around 5.96 per cent for the week ended March 15. Inflation continues to be a negative factor,” said a dealer at a private bank. Market participants expect bond prices to remain bear ish. “The much anticipated interest rate cut is now out of the question. In just one week, the 10-year yield has hardened from 7.63 per cent YTM to 7.77 per cent YTM,” said another dealer. The 7.99 per cent –9 year-2017 paper opened at Rs 101.75 (7.72 per cent YTM) and ended at Rs 101.40 (7.77 per cent YTM), against the previous close at Rs 101.68 (7.73 per cent YTM). The 8.33 per cent-28 year-2036 paper opened at Rs 10,085 (8.25 per cent YTM) and ended at Rs 100.40 (8.29 per cent YTM), against the previous close at Rs 100.66 (8.27 per cent YTM).

— Our Bureau

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