The Hindu Business Line : Bond prices sharply down

Bond prices fell sharply after the cut off yield on the auctioned papers was higher than expected. Total traded volumes on the order matching system were low at Rs 410 crore ( Rs 1,185 crore). The RBI on Friday conducted a scheduled auction for Rs 10,000 crore. Dealers said that prices fell as the cut off yield on the 8.24 per cent -10 year-2018 benchmark paper was at 9.13 per cent higher than the expected 9.10 per cent. The cut off price was Rs 94.28.

"The cut off yield on both the papers was considered bearish. It was taken as a signal on higher interest rates from the RBI," said a dealer at a private bank. Market participants said that high inflation at 11.63 per cent as well as global oil prices continued to be concerns for the market.

The 8.24 per cent-10 year-2018 paper opened at Rs 95.76 (8.89 per cent YTM) and closed at Rs 94.15 (9.15 per cent YTM), against the previous close at Rs 96.26 (8.881 per cent YTM). The 5.87 per cent-2 year-2010 paper opened at Rs 95.43 (9.23 per cent YTM) and closed at Rs 95.40 (9.25 per cent YTM). - Our Bureau

More Stories on : Govt Bonds

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Third list of terminated bank agents out

Forex reserves accretion trickles down; it’s only $656 m in April-June quarter

Rupee gains 12 paise

Penal interest waiver for APHB payment defaulters

APSFC gives in-principle nod for 50 projects

More banks hike lending, deposit rates

Bond prices sharply down

Call rates end higher

SBI offers cash back on debit cards

Database on non-farm mortgage loans planned

SBT hikes NRE, FCNR rates

LIC Housing to pursue project finance focus

In pact to vend MF products