The Hindu Business Line : Bonds gain on falling crude

Bonds gained by around 60 paise with falling crude prices generating a lot of buying interesting in the market, said bond dealers. There was expectation in the market that reduction in oil prices will moderate inflation, said a dealer with a private bank. Oil prices had fallen to $114 per barrel. There was a huge receiving interest in the overnight index swap market, said another dealer. The dealer said that with the Reserve Bank receiving in the rupee forward contracts ma rket, liquidity was comfortable in the system, despite the CRR hike coming into effect from August 30. Total traded volumes on the order matching system were higher at Rs 6,290 crore (Rs 5,670 crore).

The 8.24 per cent-10 year-2018 paper opened at Rs 96.8 (8.73 per cent YTM) and touched an intra-day low of Rs 96.49 (8.78 per cent YTM). It closed at Rs 97.54 (8.61 per cent YTM), against the previous close of Rs 96.95 (8.71 per cent YTM). A lot of buying interest was also seen in the 8.24 per cent-19 year-2027 paper. The paper opened at Rs 87.74 (9.67 per cent YTM) and closed at Rs 89.25 (9.48 per cent YTM).

— Our Bureau

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