The Hindu Business Line : Bond prices edge higher

Bond prices rose slightly on rumours that the Ministry of Finance was looking at raising the FII limit on debt investment. Total traded volumes on the order matching system were at Rs 2,040 crore (Rs 1,420 crore). Dealers said that there was some buying interest on reports that the Ministry of Finance could look at revising the FII investment in corporate bonds from $3 billion to $15 billion. However, market participants said that the overall sentiment remained bearish as inflation continues to be high. "With inflation staying in the double digits, another hike in the repo rate can be expected. The bearish cut-off yields declared by the RBI on the T-bill auctions last week continues to give a signal on higher interest rates," said a dealer at a private bank. The 8.24 per cent- 10 year-2018 paper opened at Rs 92.69 (9.396 per cent YTM) and closed at Rs 92.79 (9.38 per cent YTM), against the previous close at Rs 92.50 (9.43 per cent YTM). The 8.33 per cent- 28 year-2036 paper opened at Rs 87.24 (9.65 per cent YTM) and closed at Rs 87.25 (9.65 per cent YTM).- Our Bureau

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