The Hindu Business Line : Bonds fall; await inflation cues

After rising for two days in a row, bond prices fell by about 20 paise, as investors sold securities to take profits. Dealers said that the market was keenly watching the inflation figures to be released on Friday. “There is scope for the central bank to hike rates as inflation continues to be high.

Bond prices are more tuned to domestic inflation and crude prices rather than rate hikes by foreign central banks,” said a bond dealer with a private bank, in response to reports that foreign central banks may not hike rates as of now.

Total traded volumes on the order matching system were Rs 2,285 crore (Rs 2,505 crore). The 8.24 per cent-10 year-2018 benchmark paper opened at Rs 99.45 (8.32 per cent YTM) and closed at Rs 99.13 (8.37 per cent YTM), against the previous close of Rs 99.4 (8.33 per cent). The other highly traded paper, which was the 5.87 per cent five-year-2010 paper, opened at Rs 96.53 (8.32 per cent YTM) and closed at Rs 96.42 (8.39 per cent YTM).

— Our Bureau

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