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Money & Banking - Debt Market
Bond prices range-bound

Our Bureau

Mumbai, Dec. 5

Bond prices were range-bound and total traded volumes on the order matching system were Rs 5,390 crore (Rs 8465 crore). Dealers said profit-booking following Monday's rally caused prices to fall.

The improvement in liquidity to around Rs 32,000 crore, however, prompted some buying in the market. "While foreign banks squared off their positions earlier in the day, primary dealers and traders built positions later," said a dealer at a private bank.

Market participants expect prices to remain range bound ahead of the Rs 9,000 crore auction on Friday. The 7.59 per cent-10 year-2016 paper opened at Rs 101.34 (7.39 per cent YTM) and closed at Rs 101.38 (7.38 per cent YTM), against Monday's Rs 101.35 (7.39 per cent YTM). The 8.07-11 year-2017 paper opened at Rs 104.82 (7.38 per cent YTM) and closed at Rs 104.77 (7.39 per cent YTM), compared to Monday's Rs 104.75 (7.40 per cent YTM).

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