Money & Banking

Bond prices weak on global cues

Our Bureau Mumbai | Updated on March 18, 2011

Bond prices weakened on opening following the global cues — oil prices crossing $103 and the rise in US treasury yields. Although prices recovered towards the end of trade, they ended lower from the previous levels. “The government securities market is now tracking global cues. After the announcement of the RBI's monetary policy there is no factor domestically that is influencing the market,” said a dealer with a private bank. The market is now awaiting the new borrowing auction calendar which will be announced on March 25. “If the borrowing programme is front loaded more than 60-65 per cent, then it will impact the market negatively.

The maturity buckets of the papers announced for auction are also an important factor to watch out for,” said the dealer. The total traded volumes on the order matching system were to the tune of Rs 6,220 crore (Rs 7,420 crore). The most actively traded 8.08 per cent 11-year-2022 paper opened at Rs 99.90 (8.09 per cent YTM) and closed at Rs 99.84 (8.10 per cent YTM), against the previous close of Rs 99.99 (8.08 per cent YTM). During the day it touched a low of Rs 99.61 (8.13 per cent YTM). The second most actively traded 8.13 per cent 11-year-2022 opened at Rs 100.22 (8.10 per cent YTM) and closed at Rs 100.27 (8.09 per cent YTM).

Published on March 18, 2011

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