The Hindu Business Line : Bond prices fall

Bond prices fell slightly as traders remained cautious about inflation numbers and the Rs 10,000-crore auction held on Friday. Total traded volumes on the order matching system were at Rs 1,800 crore. Domestic inflation for the week-ended May 10 remained flat at 7.82 per cent, against the previous week. However, the revision of inflation to 8.02 per cent for the week ended March 15 kept traders cautious.

“There may be some pressure on the short-term yields going forward. But the long-term yields may not harden much,” said a dealer at a private bank. Market participants said that with redemptions and advance tax outflows expected in June, the surplus liquidity in the system could soon shrink. The 8.24 per cent-10 year-2018 opened at Rs 101.50 (8.01 per cent YTM) and ended at Rs 101.34 (8.04 per cent YTM) against the previous close at Rs 101.56 (8 per cent YTM). The 7.59 per cent- 8 year-2016 paper opened at Rs 96.98 (8.11 per cent YTM) and ended at Rs 97.07 (8.10 per cent YTM), against the previous close at Rs 97.02 (8.11 per cent YTM).

— Our Bureau

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