The Hindu Business Line : Bond yields drop below 5%

Buoyed by the rate cut announcement by the RBI, yields fell below five per cent in intra-day trade, though they closed above five per cent. The bond prices closed down by 80 paise as investors booked profits to take advantage of higher prices. Bond prices opened higher by 75 paise , with the yield of the benchmark security falling to 4.86 per cent, said a dealer with a private bank. However, profit-booking by investors pulled down prices, he added.

Total traded volumes on the order matching system were higher at Rs 15,860 crore (Rs 12,235 crore). The benchmark security opened at Rs 124 (4.98 per cent YTM) and touched an intra-day high of 125.0 (4.86 YTM). It closed at 122.43 (5.16 per cent YTM), against the previous close of Rs 123.25 (5.07 per cent YTM) The 7.56 per cent-2014 paper opened at Rs 113.20 (4.91 per cent YTM) and closed at Rs 111.81 (5.18 per cent YTM).

— Our Bureau

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