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Mumbai, Aug 5

The bond market was very bullish as oil and base metal prices came off highs. This meant lower commodity prices and, therefore, lower inflation, said a bond dealer with a private bank. Total traded volumes on the order matching system were higher at Rs 5,745 crore (3,905 crore). Of this Rs 4,500 crore worth trading was in one single security, the 8.24 per cent 10-year benchmark security. There is not much supply in the rest of the bonds, the dealer said. “Right now t he bond market is looking for unwinding in commodity prices, which will get inflation down and will help the central bank in deciding if interest rates need to be lowered. Liquidity is not an issue right now,” the dealer said.

The 8.24 per cent-10 year-2018 paper opened at Rs 94.5 (9.10 per cent YTM) and closed at Rs 95.35 (8.96 per cent YTM) against the previous close of Rs 93.92 (9.19 per cent YTM). The 5.87 per cent-2 year-2010 paper, opened and closed at Rs 97.75 (9.15 per cent YTM), against the previous close of Rs 95.64 (9.23 per cent YTM). –

Our Bureau

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