The Hindu Business Line : Bond prices rally by 60 paise

Bond prices rallied by about 63 paise as the market felt that the liquidity in the system might improve in the coming days as the bank strike has been called off. "Though the liquidity was tight there was a change in sentiment," said a dealer at a private bank. "Traders felt that RBI may take a cue from the US Federal Reserve and keep the rates unchanged. This pushed up the bond prices and the 10-year yield rallied by about 70-80 paise during the day," he added.

According to dealers, there may be a slight correction in the 10-year yield tomorrow. "We don't expect traders to take big positions in the market during the next week as the current financial year is coming to an end," the dealer added. The total traded volumes on the order matching system was higher at Rs 2,545 crore against Wednesday's Rs 635 crore. The 8.07 per cent-10-year-2017 paper opened at Rs 100.50 (8 per cent YTM) and closed at Rs 100.83 (7.95 per cent YTM) against Wednesday's close at Rs 100.20 (8.04 per cent YTM). The 7.37 per cent-7 year-2014 paper opened at Rs 96.50 (8.03 per cent YTM) and closed at Rs 96.83 (7.97 per cent YTM) against previous close of Rs 96.18 (8.09 per cent YTM) on Wednesday.