The Hindu Business Line : Bond markets steady

The bond market was steady after figures showed that GDP growth in the fourth quarter was 8.1 per cent and the wholesale price index inflation increased to 8.1 per cent as on May 17, higher than the previous week's 7.82 per cent. According to bond dealers, there was short covering in the bond market, which helped bond prices to gain. Therefore, there could be a sell-off on Monday.

Total traded volumes on the order matching system were Rs 4,505 crore (Rs 3,350 crore). The benchmark 8.24 per cent- 10-year 2018 paper opened at Rs 101.15 (8.07 per cent YTM) and closed at Rs 100.94 (8.09 per cent), unchanged from the previous close. The 7.59 per centeight year-2016 paper opened at Rs 97.02 (8.12 per cent YTM) and closed at Rs 96.72 (8.16 per cent YTM).

The relaxation of the guidelines for ECBs also helped improve sentiments in the market, as it means more liquidity in the market, said a senior dealer with a public sector bank. However, the liquidity condition continues to be under pressure, due to a scheduled auction of Rs 10,000 crore next week and advance tax outflow in June, dealers said.

- Our Bureau

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