The Hindu Business Line : Bonds decline sharply

Bond prices fell sharply by over 40 paise as concerns about higher oil prices and rising inflation numbers weighed on traders. Total traded volumes on the order matching system were at Rs 3,555 crore (Rs 3,060 crore). Dealers said that prices fell as the price of global crude rose to $118 per barrel. “Besides the apprehensions about higher inflation numbers, traders also wanted to lighten their positions ahead of the Rs 6,000-crore auction on Friday,” said a de aler at a private bank.

Domestic inflation released after market hours were at 12.63 per cent for the week ended August 9, against 12.44 per cent in the previous week. Dealers are also concerned about the tight liquidity conditions in the market. The 8.24 per cent- 10 year-2018 paper opened at Rs 94.07 (9.17 per cent YTM) and ended at Rs 93.86 (9.21 per cent YTM), against the previous close at Rs 94.3 (9.13 per cent YTM). The 7.95 per cent- 24 year-2032 paper opened at Rs 82.31 (9.89 per cent YTM) and ended at Rs 82.10 (9.92 per cent YTM), against the previous close at Rs 82.39 (9.87 per cent YTM).

— Our Bureau

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