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Money & Banking - Govt Bonds
Bond prices range-bound

Mumbai, Aug 14

The bond market was range-bound on Tuesday due to lack of clear signals. A dealer from a private bank said, “There is general discomfort and worry on the liquidity front because of the sub-prime crisis, but nobody is overly bothered. But we don’t know the intensity of the crisis because it is from far-flung places.” Following the sub-prime crisis, near term liquidity may be hit as there may be some reverse flow of foreign capital, the dealer explained. Ho wever, in the long term there is no reason to worry, he added. Total traded volumes on the order matching system were at Rs 1,510 crore. The 7.49 per cent 10-year 2017 benchmark paper opened at Rs 96.72 (7.98 per cent YTM) and closed at Rs 96.7 (7.98 per cent YTM) against the previous close of Rs 96.72 (7.98 per cent YTM). The 7.99 per cent 10-year 2017 opened at Rs 100.29 (7.94 per cent YTM) and closed at Rs 100.19 (7.96 per cent YTM), marginally lower than the previous close of Rs 100.20 (7.96 per cent YTM).

— Our Bureau

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