The Hindu Business Line : Securities bearish

MUMBAI: The bond market continued to be weak as crude oil prices touched $70 a barrel. Though bond prices opened at more or less the same levels as the earlier close, they went down gradually during the day, dealers said.

The 7.37 per cent 9-year 2014 paper opened at Rs 102.05 (7.0469 per cent YTM) and touched a low of Rs 102.03, before ending trade at Rs 102.0675 (7.04 per cent), lower than the earlier close of Rs 102.08 (7.02 per cent YTM).

The 10.25 per cent 16-year-2021 paper opened at Rs 125.39 (7.4707 per cent YTM) and closed at Rs 125.46 (7.4705 per cent YTM), lower from Tuesday's close of Rs 125.50 (7.46 per cent YTM). LIC was seen buying this paper, according to dealers.

A dealer with a private bank said that deals were also seen in few illiquid papers such as the 12 per cent 2008 paper and 12.29 per cent 2010 paper.

Though there was no activity seen in the 7.38 paper 10-year 2015 benchmark paper, it was dealt at 7.09 per cent levels (7.08 per cent YTM).

According to market sources, prices of most government securities were range-bound between 5-8 paise in the absence of a fresh trigger. Volumes were also thin, indicating the market was not inclined to move in either direction.

Call rates opened at 5 per cent and closed at 4.9-5 per cent (5-5.05 per cent).

In the one-day reverse repo auction, the RBI received and accepted 40 bids amounting to Rs 25,780 crore.

In the CBLO market, there were 245 trades for Rs 10,979.75 crore in the rate range of 4.78-5 per cent.

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