The Hindu Business Line : Bond prices up post-budget

Bond prices rose by around 20 to 30 paise as the positive sentiment after the Union Budget prompted traders to continue buying. Total traded volumes on the order matching system were at Rs 6,615 crore. Dealers said that the Budget announcement of a lower market borrowing programme for the next fiscal had spurred buying interest in the bond market.

However, traders said that the redemption of oil bonds next fiscal and the proposed debtwaiver for farmers could mean that the government may issue more bonds. Market participants are also concerned about the price of global crude which was at $101 per barrel. "Oil prices remain a concern. However, the liquidity in the system is likely to improve as government expenditure may enter the system by next week," said a dealer at a private bank.

The 7.99 per cent-9 year-2017 paper opened at Rs 102.90 (7.55 per cent YTM) and ended at Rs 103.03 (7.53 per cent YTM), against the previous close 102.81 (7.56 per cent YTM). The 8.33 per cent-28 year-2036 paper opened at Rs 104.20 (7.95 per cent YTM) and ended at Rs 104.45 (7.93 per cent YTM), against the previous close at Rs 104.08 (7.96 per cent YTM). - Our Bureau

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