The Hindu Business Line : Bonds up on easing of US yields

Bond prices rose around 23 paise on easing of US yields. Total traded volumes on the order matching system were around Rs 2,450 crore (Rs 2,335 crore).

Dealers said prices opened high tracking the US 10-year yields, which eased to 4.6 per cent from 4.66 per cent. However, there was some selling in anticipation of the Government auction given that money was scarce. The inching up of inflation to 5.48 per cent for the week ending December 23 against 5.43 per cent in the previous week jittered the bond market. After trading hours, the RBI announced a reduction in the size of the Government auction to Rs 4,000 crore from the scheduled Rs 9,000 crore bringing some cheer to the players.

The 8.33 per cent-30 year-2036 paper will be auctioned for a notified amount of Rs 4,000 crore on January 12 while the auction of a security in the 10-15 year segment stands cancelled. The 7.59 per cent-9 year-2016 paper opened at Rs 100.25 (7.55 per cent YTM) and closed at Rs 100.27 (7.54 per cent YTM), against Rs 100.07 (7.58 per cent YTM) on Thursday. The 8.07 per cent-10 year-2017 paper opened at Rs 103.60 (7.55 per cent) and ended at Rs 103.68 (7.54 per cent YTM), up from Thursday's Rs 103.45 (7.57 per cent YTM).