Money & Banking

Bond yields harden as inflation moves up

| Updated on: Mar 14, 2011

Bond yields hardened as the Wholesale Price Index for February increased to 8.31 per cent from 8.23 per cent in January. The situation is very bearish for the bond market due to high inflation and oil prices, said dealers. “The market has already discounted a 25 basis points hike by the Reserve Bank of India in the mid-quarter review scheduled for March 17,” said a dealer with a public sector bank.

The total traded volumes on the order matching system were to the tune of Rs 8,085 crore. The most actively traded 8.08 per cent-11 year-2022 paper opened Rs 100.15 (8.06 per cent YTM) and closed at Rs 99.85 (8.10 per cent YTM), against Friday's closing yields of 8.06 per cent. The second most actively traded 8.13 per cent-11 year-2022 paper opened at Rs 100.65 (8.04 per cent YTM) and closed at Rs 100.20 (8.01 per cent YTM).

Published on March 14, 2011

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