The Hindu Business Line : Bond prices up by 30 paise

Bond prices edged up by around 30 paisa on expectations of a pause in interest rate hike cycle in the US. "The market is eagerly awaiting the Federal Open Market Committee meeting on September 30," said a dealer at a private bank.

The total traded volumes were about Rs 4,015 crore (Rs 1,840 crore). "Mr P. Chidambaram, Finance Minister, made statements on country's growth being favourable. He also said that inflation and oil prices are the only concerns. This pushed up prices in the bond market," said the dealer.

The market also reacted to the statement made by Dr Y.V. Reddy, RBI Governor, on keeping inflation below 5 per cent, he added. However, low liquidity in the market pushed prices down, during the day, the dealer said. Liquidity is likely to be under pressure for a couple of days due to advance tax outflows.

The 7.59 per cent-10 year-2016 paper opened at Rs 98.4 (7.83 per cent YTM) and closed at Rs 98.74 (7.778 per cent YTM), higher than Friday's close at Rs 98.42 (7.83 per cent YTM). The 8.07 per cent-11 year-2017 paper opened at Rs 101.25 (7.88 per cent YTM) and ended at Rs 101.72 (7.82 per cent YTM), higher than Friday's close at Rs 101.36 (7.87 YTM).

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