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Mumbai, Aug. 29

Bond prices rose by around 40 paise as inflation figures were lower than market expectations. Total traded volumes on the order matching system were at Rs 5,670 crore (Rs 7,930 crore). Dealers said prices opened higher as inflation had eased to 12.41 per cent for the week ended August 16, lower than the expected 12.7-12.8 per cent. “The redemption of Rs 15,000 crore worth of bonds this week has also increased the SLR (Statutory Liquidity Ratio)-related demand from ba nks,” said a dealer at a private bank. Market participants will be closely monitoring the liquidity in the system, next week. The Cash Reserve Ratio hike of 25 basis points, which kicks in on Saturday, will drain out around Rs 8,000 crore from the system. There will also be a Government security auction scheduled between August 6 and 12. The 8.24 per cent-10 year-2018 paper opened at Rs 97 (8.70 per cent YTM) and closed at Rs 96.95 (8.71 per cent YTM), against the previous close at Rs 96.56 (8.77 per cent YTM). The 8.24 per cent-19 year-2027 paper opened at Rs 88.65 (9.56 per cent YTM) and ended at Rs 87.90 (9.66 per cent YTM), against the previous close at Rs 88.05 (9.63 per cent YTM). —

Our Bureau

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