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Money & Banking - Govt Bonds
Bond prices up marginally

Mumbai, Oct. 7

Bond prices increased marginally by 13 paise on Tuesday courtesy the positive sentiment after the RBI cut CRR by 50 basis points, said dealers. Though the market opened higher by Re 1, the gains were completely shaved off during the day, said a dealer with a private bank. Markets were apprehensive that Rs 20,000 crore infusion, after the CRR cut, would not be sufficient to meet the liquidity crunch in the system. Besides, there was profit taking in the latter half of trade , added the dealer. Total traded volumes on the order matching system were at Rs 5,340 crore. The 8.24 per cent-10 year-2018 paper opened at Rs 101.8 (7.96 per cent YTM) and closed at Rs 100.84 (8.11 per cent YTM), against the previous close of Rs 100.71 (8.13 per cent YTM). The 7.94 per cent-13 year-2021 paper opened at Rs 96.8 (8.35 per cent YTM) and closed at Rs 94.9 (8.60 per cent YTM).

— Our Bureau

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