The Hindu Business Line : Bond prices rise

Bond prices rose as liquidity in the system substantially improved. Total traded volumes on the order matching system were at Rs 4,380 crore. Dealers said that the sentiments improved as liquidity in the system increased to over Rs 19,000 crore. "There is also a lot of SLR (statutory liquidity ratio) related demand from banks as they have been shoring up their deposits. Banks have been chasing treasury bills and the aggressive cut off price in Wednesday's auction has driven them to government securities," said a dealer at a private bank. Market participants said traders might be cautious on Friday, in anticipation of the inflation numbers. The 7.99 per cent-9 year-2017 paper opened at Rs 100.35 (7.93 per cent YTM) and closed at Rs 100.64 (7.89 per cent YTM), against the previous close at Rs 100.30 (7.93 per cent YTM). The 5.48 per cent-1 year-2009 paper opened at Rs 97.75 (7.48 per cent YTM) and closed at Rs 97.73 (7.498 per cent YTM). - Our Bureau

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