The Hindu Business Line : Bonds volatile, end lower

Bond prices were volatile during the day and ended slightly lower as traders continued to cut their positions in the market. Total traded volumes on the order matching system were at Rs 1,420 crore (Rs 1,925 crore). Dealers said that the 10-year paper crashed to Rs 91.80 (9.54 per cent YTM) during the day as there was selling in anticipation of a high inflation number. Domestic inflation was at 11.89 per cent for the week ended June 28.

“There was thin participation and prices were volatile. The sentiment continues to be bearish as inflation is not expected to ease until December,” said a dealer at a private bank. Market participants said that bond yields could ease slightly early next week on some “opportunity buying.”

The 8.24 per cent-10 year-2018 paper opened at Rs 92.26 (9.47 per cent YTM) and ended at Rs 92.50 (9.43 per cent YTM) against the previous close at Rs 92.5 (9.43 per cent). The 8.28 per cent- 24 year-2032 paper opened at Rs 83.85 (10.09 per cent YTM) and closed at Rs 83.70 (10.10 per cent YTM). –

Our Bureau

More Stories on : Govt Bonds

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

Stories in this Section
Reliance Money to pick up stake in NMCE

Forex reserves down $3.4 b

Rupee gains 13 paise

BAG targets rural biz

India’s rating may be downgraded, says S&P

Zensar bags Kotak Mahindra Bank contract

Rate hike looks certain; will it be on July 29?

Bonds volatile, end lower

Small borrowal accounts declining

Non-food credit up Rs 52,360 cr

Call rate ends higher

TMB hikes rates on deposits

Lakshmi Vilas to focus on low-cost deposits