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).