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Our Bureau

Mumbai, July 2 The government securities (G-Sec) market turned bullish on Thursday on hopes that the government would restrict its borrowing programme to Rs 3.62 lakh crore, the figure which was announced in the interim Budget.

It may, at the most, stretch it to around Rs 4 lakh crore.

G-Sec turnover on NDS order matching system shot up to Rs 19,920 crore as against the previous day’s Rs 12,885 crore. Among others, yield on the 7.94 per cent 2021 G-Sec (turnover: Rs 4,750 crore) thawed by 10 basis points to 7.12 per cent (previous close: 7.22 per cent) even as its price rose by Rs 0.86 to close at Rs 106.47 (Rs 105.61), and yield on the 6.07 per cent 2014 G-Sec (turnover: Rs 4,195 crore) softened by 11 basis points to 6.32 per cent (6.43 per cent) even as its price rose by Rs 0.44 to close at Rs 98.94 (Rs 98.50).

The yield and price of a bond are inversely related. “The government increased auto fuel prices yesterday. Today, the Economic Survey said that the government will mop up Rs 25,000 crore through disinvestment… The market will rally further, if the government restricts its borrowing programme to the Rs 3.62-4 lakh crore range,” said a dealer with a public sector bank.

More Stories on : Govt Bonds

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