Our Bureau

Mumbai, March 20

In the bond market, traded volumes were very low and sentiment was bearish. However, prices rose after 3 p.m.and traders said that RBI could have intervened and purchased securities in the market.

Dealers said that bond prices initially fell by 15 paise as tight liquidity was a concern. The RBI lent around Rs 23,000 crore through the repo-window on the back of advance tax outflows.At the end of the trading session, bond prices were five paise higher than the previous close.

The 8.07 per cent-11 year-2017 paper opened at Rs 104.95 (7.39 per cent YTM) and closed at Rs Rs 105.04 (7.38 per cent YTM). The 9.39 per cent-5 year-2011 paper opened at Rs 109.35 (7.22 per cent YTM) and ended at Rs 109.40 (7.21 per cent YTM).

(This article was published in the Business Line print edition dated March 21, 2006)
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