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Money & Banking - Govt Bonds
Bond prices fall 55 paise

Mumbai, Sept. 22

Bond prices fell by 55 paise on Monday, as the liquidity crunch in the system continued, said dealers.Trading volumes were thin as not much participation was seen, said a dealer with a private bank.Total traded volumes on the order matching system were lower at Rs 3,790 crore (Rs 5,650 crore). Oil prices increased to $106 per barrel pulling up bond yields. There was paying interest in the overnight index swap market, added the dealer. The 8.24 per cent-10 year-2018 paper opened at Rs 98.65 (8.43 per cent YTM) and touched an intra-day high of Rs 98.94 (8.40 per cent YTM). It closed at Rs 98.45 (8.47 per cent YTM), against the previous close of Rs 99 (8.39 per cent YTM). The second highly traded paper, the 7.95 per cent-24 year-2032 paper, opened at Rs 90.65 (8.89 per cent YTM) and closed at Rs 90.15 (8.95 per cent YTM). - Our Bureau

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