The Hindu Business Line : Bond prices drop 70 paise

Bond prices fell by around 70 paise on low buying interest and thin volumes. Total traded volumes on the order matching system remained low at Rs 850 crore (Rs 1260 crore). Dealers said that volumes remained low as banks have already sold off most of their government stocks to investors such as insurance companies in the last few weeks. Buying was also subdued as it was the last day of the quarter. "The 10- year bond is trading at 8.68 per cent while other bonds are having a yield of over 9 per cent. This artificially low level of the 10-year yield will get repriced in the auction on Friday and it should settle at 9 per cent," said a dealer at a private. The 8.24 per cent-10 year-2018 benchmark paper opened at Rs 96.95 (8.70 per cent YTM) and ended at Rs 97.05 (8.69 per cent YTM), against the previous close at Rs 97.75 (8.58 per cent YTM). The 8.33 per cent-28 year-2036 paper opened at Rs 91.24 (9.20 per cent YTM) and closed at Rs 91.25 (9.20 per cent YTM). - Our Bureau

More Stories on : Govt Bonds

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
SBI list of loan waiver beneficiaries completed

Indian Bank waives Rs 551 cr

Waiver certificates handed over

Implications for monetary policy

Foreign investment pumped up reserves

Rupee breaches 43-level

What’s in a name?

ICICI Prudential’s ‘Web chat’

Oil price impact widens current account deficit

YES Bank raises Rs 364 cr

Farm loan waiver bill for banks may be lower

PNB opens branch at Mannarkkad

More banks hike lending, deposit rates

Bond prices drop 70 paise

Call rates tad lower