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Money & Banking - Govt Bonds
Bond prices decline

Our Bureau

Mumbai, Nov. 30

Bond prices fell for the second day on profit booking. Total traded volumes on the order matching system were Rs 4,795 crore (Rs 5,600 crore). Dealers said that a correction was due as bond prices have only moved north this month. The 10-year yield on Thursday eased to 7.43 per cent from 7.67 per cent on November 3. Liquidity will be under pressure in December due to the Rs 9,000-crore government securities auction and advance tax outflows of around Rs 20,000 crore, said a dealer at a private bank.

The 7.59-10 year-2016 paper opened at Rs 101.20 (7.41 per cent YTM) and closed at Rs 101.07 (7.43 per cent YTM), down from Wednesday's Rs 101.28 (7.39 per cent YTM). The 8.07-11 year-2017 paper opened at Rs 104.68 (7.40 per cent YTM) and ended at Rs 104.57 (7.42 per cent YTM), lower than Wednesday's close at Rs 104.78 (7.39 per cent YTM).

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