Mumbai, Oct 30
Bond prices dropped by around three paise on Monday . Total traded volume on the order matching system was Rs 1,950 crore (Rs 2,750 crore). "The volumes were lower today because the traders were nervous of taking a position ahead of the Credit Policy," said a dealer at a private bank.
Dealers are of the opinion that the macro-economic review by the Reserve Bank of India carries a negative tone. "The RBI is concerned about inflation and may raise the rates tomorrow," the dealer said. The 7.59 per cent 10-year 2016 paper opened at Rs 99.95 (7.60 per cent YTM) and closed at Rs 99.84 (7.61 per cent YTM), against Rs 99.87 (7.61 per cent YTM) on Friday. The 8.07 per cent 11-year 2017 paper opened at Rs 102.96 (7.64 per cent YTM) and closed at Rs 102.96 (7.64 per cent YTM) against Friday's Rs 102.98 (7.64 per cent YTM).