Date:23/08/2006 URL: http://www.thehindubusinessline.com/2006/08/23/stories/2006082302620600.htm

Back Bond prices range-bound

Our Bureau

Mumbai, Aug. 22

Bond prices were range-bound as market participants were wary of taking large positions. The total traded volume stood at Rs 2,480 crore on the order-matching system.

Dealers said that the rise in the price of global crude and the pressure on domestic liquidity were concerns for market participants. "There has been a fall in liquidity due to the outflows from the auction as well as reduction in the pace of government spending.

The outlook for the bond market seems to be bearish for the near term and the 10-year yield could inch up to 8.10 per cent," said a dealer at a private bank. The 7.59 per cent-10 year-2016 year paper opened at Rs 97.13 (8.02 per cent YTM) and ended at Rs 97.09 (8.03 per cent YTM), against Monday's close at Rs 97.06 (8.03 per cent YTM). The 8.07 per cent-11 year-2017 paper opened at Rs 99.79 (8.10 per cent YTM) and closed at Rs 99.85 (8.09 per cent YTM), compared to Rs 99.76 (8.10 per cent YTM) on Monday.