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The bond market was lacklustre ahead of the auction scheduled for Friday. Most people shed their trading positions to make place for the new 10-year bonds that will be auctioned tomorrow, said dealers. Bond prices gained slightly, as food inflation for the week ended March 26, fell to 9.18 per cent from 9.5 per cent in the previous week. The Reserve Bank of India will auction a new 10-year stock for Rs 5,000 crore and a new 7-year stock for Rs 4,000 crore.
“The new 10-year always commands a premium as it will have a lot of captive requirement. Also, Rs 5000 crore is not a big amount, so it will be well received. We expect the coupon for the 10-year to be around 7.85-7.90 per cent,'' said a dealer with a private bank. The total traded volumes on the order matching system were to the tune of Rs 5,000 crore.
The most actively traded 8.08 per cent 11-year 2022 paper opened at Rs 100.13 (8.06 per cent YTM) and closed at Rs 100.19 (8.05 per cent YTM), against the previous close of Rs 100.13 (8.06 per cent YTM). The second most actively traded 8.13 per cent 11-year 2022 paper opened at Rs 100.53 (8.06 per cent YTM) and closed at Rs 100.59 (8.05 per cent YTM), against the previous close of Rs 100.52 (8.06 per cent YTM). —
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