The Hindu Business Line : Bond prices fall on profit booking

Bond prices ended lower by 20-25 paise from the previous close, due to profit booking. There was lot of intra-day movement based on positive statements, but market participants used the movement to book profits ahead of the yearend, said a bond dealer with a private bank.

A government official said there was room to cut rates further, which was the reason for the intra-day movement in bond prices, said the dealer. Total traded volumes on the order matching system were lower at Rs 8,620 crore (Rs 9,095 crore).

The 8.24 per cent-10 year-2018 paper opened Rs 118.5 (5.66 per cent YTM) and closed at Rs 117.75 (5.74 per cent YTM), lower than Monday’s close of Rs 118.07 (5.71 per cent YTM). The 7.95 per cent-24 year-2032 paper opened at Rs 115.2 (6.66 per cent YTM) and closed at Rs 114.1 (6.75 per cent YTM), against the previous close of Rs 114.05 (6.75 per cent YTM). During the day it touched a low of Rs 113.6 (6.79 per cent YTM).

— Our Bureau

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