Date:23/09/2006 URL: http://www.thehindubusinessline.com/2006/09/23/stories/2006092304760600.htm

Back Bond prices edge up

Our Bureau

Mumbai, Sept. 22

Domestic bond prices edged up by 30 paise, tracking the gains made by the US treasury bills. The total traded volume on the order matching system was Rs 6,730 crore (Rs 5,900 crore).

Dealers said that the US ten-year yield rallied to 4.63 per cent (4.7150 per cent) following the release of unfavourable data, which implied slower economic growth and hence fewer hikes in interest rates. Bond dealers were awaiting the release of the half yearly government securities' auction calendar or the government borrowing programme late Friday evening. "Traders are expecting the auction calendar to be in line with expectations. But bond prices will react either positively or negatively to the auction calendar on Monday," said a dealer at a private bank.

The 7.59 per cent - 10-year 2016 paper opened at Rs 99.90 (7.60 per cent YTM) and closed at Rs 99.75 (7.63 per cent YTM), up from Thursday's close at Rs 99.45 (7.68 per cent YTM). The 8.07 per cent-11 year-2017 paper opened at Rs 102.90 (7.65 per cent YTM) and closed at Rs 102.75 (7.68 per cent YTM) against Thursday's Rs 102.41 (7.72).