The Hindu Business Line : Bond prices flat

Bond prices were almost flat as traders remained cautious about taking positions ahead of Rs 9,000 crore worth of auctions this week. Total traded volumes on the order-matching system were at Rs 4,590 crore (Rs 3,220 crore). Market participants were wary about how much liquidity would be sucked out of the system by the auctions. However, traders said that the outlook for the bond market seemed reasonably positive.

“The yields seem to have peaked out at 7.55 per cent for the 10-year paper, from a low of 7.30 per cent. It won’t harden any further, as traders believe that a cut in interest rates may happen by April,” said a dealer at a private bank.

The 7.99 per cent-9 year-2017 paper opened at Rs 103.14 (7.52 per cent YTM) and ended at Rs 103.19 (7.51 per cent YTM), against the previous close at Rs 103.19 (7.5 per cent YTM). The 8.33 per cent-28 year-2036 paper opened at Rs 105.4 (7.85 per cent YTM) and ended at Rs 105.39 (7.85 per cent YTM), against the previous close at Rs 105.49 (7.84 per cent YTM).

— Our Bureau

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