The Hindu Business Line : Bond prices up on ample liquidity

Bond prices rose by over 50 paise as comfortable liquidity in the system prompted traders to buy in the market. Total traded volumes on the order-matching system were at Rs 9,275 crore. Dealers said that the surge in liquidity in the system (under RBI’s liquidity adjustment facility) from Rs 4,270 crore on Wednesday to Rs 20,250 crore on Friday improved trading sentiment. “Despite the higher inflation figure at 7.75 per cent for the week-ended April 19, traders took comfort from positive statements made by the Finance Minister on inflation. There has also been ample liquidity in the system,” said a dealer at a private bank. The price of global crude also eased to $112 per barrel, from $119 per barrel a few days ago. Bond prices have been on the upward trend since the annual monetary policy, as key rates were kept unchanged. “Both the Government and the RBI seem to be confident about tackling inflation,” said another dealer at a private bank.

The 8.24 per cent-10 year-2018 benchmark paper opened at Rs 102.10 (7.93 per cent YTM) and closed at Rs 102.74 (7.84 per cent YTM) against the previous close at Rs 102.18 (7.92 per cent YTM). The 8.07 per cent- 9 year-2017 paper opened at Rs 100.60 (7.97 per cent YTM) and ended at Rs 100.68. (7.96 per cent YTM).

— Our Bureau

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