The Hindu Business Line : Bond prices zoom

Bond prices rose sharply as there was no announcement of the scheduled auction from the Reserve Bank of India, said dealers. The prices rose by Rs 3.15 on Monday, after the sharp fall on Friday. There was a lot of buying interest from investors, after there was no announcement about the auction on Friday, said a dealer with a private bank.

The Government is scheduled to borrow Rs 10,000 crore between January 12 and 16.

There is a possibility that the announcement would be made during the week, the dealer added. The rumours about a possible cut in domestic fuel prices also fuelled the rally, dealers said. Total traded volumes on the order matching system were substantially higher at Rs 20,700 crore (Rs 11,190 crore). The benchmark security opened at Rs 115 (6.09 per cent YTM) and touched an intra-day high of Rs 117.9 (5.72 per cent YTM). It closed at Rs 117.4 (6.19 per cent YTM); against the previous close of Rs 114.25 (6.19 per cent YTM). The 6.30 per cent-2032 paper opened at Rs 89.70 (7.48 per cent YTM) and closed at Rs 95.79 (6.76 per cent YTM).

— Our Bureau

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