The Hindu Business Line : Bond prices up on value buying

Bond prices rose by almost Re 1 due to value buying. In a market that was devoid of too many sellers, prices moved in a one way downward direction. “Technically the market was oversold. Therefore, the current levels seem good for buyers to pick up securities. But if you consider other factors such as liquidity and auctions, this is not a good time to buy,” said a bond dealer with a private bank. The total traded volumes on the order matching system were also higher at Rs 5,835 (Rs 3,555 crore).

The 8.24 per cent- 10 year-2018 paper opened at Rs 93.69 (9.24 per cent YTM) and closed at Rs 94.75 (9.06 per cent YTM), against the previous close of Rs 93.86 (9.21 per cent YTM). The 7.95 per cent- 24 year-2032 paper opened at Rs 82.35 (9.88 per cent YTM) and closed at Rs 82.55 (9.86 per cent YTM), against the previous close of Rs 82.10 (9.92 per cent YTM). Next week could see bond yields on the 10-year benchmark security moving a shade below 9 per cent, if crude falls by $2-3 dollars or even remains at the current levels, as the bond market is still oversold, said the dealer.

— Our Bureau

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