The Hindu Business Line : Bond prices decline

The bond market saw another bout of selling in anticipation of higher inflation numbers. Total traded volumes on the order matching system were at Rs 5,405 crore (Rs 6,945 crore). Market participants began selling as they expected to inflation to rise much above 12 per cent. Dealers said that sentiment was also negative with global oil prices climbing to over $116 per barrel, from $112 per barrel. The ten year paper fell to an intra day low of Rs 93.85 (9.21 per cent YTM) during the day. Prices, however, recovered slightly before closing. "There was some short covering seen at the end of the day, which helped prices recover from their intra-day low," said a dealer at a private bank.

The 8.24 per cent-10 year-2017 paper opened at Rs 94.10 (9.17 per cent YTM) and closed at Rs 94.29 (9.14 per cent TM), against the previous close at Rs 94.56 (9.09 per cent YTM). The 7.95 per cent-24 year-2032 paper opened at Rs 82.51 (9.86 per cent YTM) and ended at Rs 82.60 (9.85 per cent YTM) against the previous close at Rs 83.10 (9.79 per cent YTM). - Our Bureau

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