The Hindu Business Line : Bonds shed intra-day gains

Bond prices opened higher on Wednesday and the 10-year G-Sec touched a new high in day-trade. However, profit-booking pushed prices down and they closed marginally higher from the previous close. The scheduled auction of Rs 8,000 crore worth Government securities, which will bring in fresh supplies, is making market participants cautious, said a bond dealer with a private bank. There is also a fear that crude oil prices, which have fallen to $104 for a barrel, may not fall further as OPEC has announced that it is cutting production, the dealer added. “As bond prices gained last week, today’s fall was mainly on account of profit taking and caution ahead of the auction. The volumes were down due to the bearish mood,” he said. Inflation is expected to be close to 12 per cent, however, the market is not unduly worried about it, the dealer said. Total traded volumes on the order were lower at Rs 5,445 crore (Rs 7,980 crore). The 8.24 per cent-10 year-2018 paper opened at Rs 99.25 (8.35 per cent YTM) and touched a high of Rs 99.60 (8.3 per cent YTM). It closed at Rs 99.14 (8.37 per cent YTM), against the previous close of Rs 99.03 (8.38 per cent YTM). The 8.24 per cent-19 year-2027 paper opened at Rs 94.35 (8.87 per cent YTM) and closed at Rs 94.30 (8.87 per cent YTM), against the previous close of Rs 93.88 (8.92 per cent YTM).

— Our Bureau

More Stories on : Govt Bonds

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page