The Hindu Business Line : Bond prices fall

Bond prices fell by around 70 paise as traders lightened their positions ahead of the release of inflation figures on Thursday. Total traded volumes on the order matching system were at Rs 3,380 crore (Rs 6,945 crore). Market participants reacted negatively to comments made by the former RBI Governor, Dr C. Rangarajan, about domestic inflation. “Dr Rangarajan said that inflation could rise beyond 13 per cent. So, traders started selling in anticipation of the releas e of inflation numbers on Thursday,” said a dealer at a private bank. Traders said that prices also fell reacting to IIP numbers which were considered to be better than expected. Bond dealers also wanted to keep their positions light ahead of the long week-end. The 8.24 per cent-10 year-2018 paper opened at Rs 95.40 (8.96 per cent YTM) and ended at Rs 94.56 (9.09 per cent YTM), against the previous close at Rs 95.28 (8.97 per cent YTM). The 7.95 per cent-24 year-2032 paper opened at Rs 83.80 (9.70 per cent YTM) and ended at Rs 83.10 (9.79 per cent YTM), against the previous close at Rs 84.20 (9.65 per cent YTM).

— Our Bureau

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