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Money & Banking - Govt Bonds
Liquidity drives bond prices down

Mumbai, Nov. 20

Bond prices fell by two paise on concerns of tight cash conditions in the system. The yields, however, remained unchanged. The total traded volumes on the order matching system were at Rs 2,895 crore (Rs 1,620 crore). “The overall sentiment in the market is bullish but we need to see how the liquidity condition spans out,” said a bond dealer with a private sector bank. The 7.99 per cent-10 year-2017 paper opened at Rs 100.84 (7.86 per cent YTM), and closed at R s 100.75 (7.87 per cent YTM), against the previous close of Rs 100.76 (7.87 per cent YTM). The 8.2 per cent-2022-paper opened at Rs 100.15 (8.18 per cent YTM) and closed at Rs 100.20 (8.17 per cent YTM). —

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