The Hindu Business Line : Bond prices end a little lower

Bond prices ended the day slightly lower on profit booking. Total traded volumes on the order matching system were at Rs 7,565 crore (Rs 12,555 crore). Bond dealers said that prices rose earlier in the day as inflation eased slightly to 12.34 per cent for the week ended August 23, against the previous week's 12.40 per cent. The fall in the price of global crude to $106.50 per barrel also aided the rise in bond prices. However, prices fell later in the day due to profit-booking.

"There is no supply in the market as most banks are now holding securities in HTM (Held To Maturity) to avoid losses in a volatile market. So, there is just trading interest rather than buying interest," said a dealer at a private bank. A government security auction of Rs 5,000 crore is expected next week.

The 8.24 per cent-10 year-2024 paper opened at Rs 98.50 (8.47 per cent YTM) and touched an intra day high of Rs 98.59 (8.45 per cent YTM). It ended the day at Rs 98.42 (8.49 per cent YTM), against the previous close at Rs 98.48 (8.47 per cent YTM). The 8.24 per cent-19 year-2027 paper opened at Rs 92 (9.14 per cent YTM) and closed at Rs 91.84 (9.16 per cent YTM), against the previous close at Rs 92.2 (9.12 per cent YTM). - Our Bureau

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