Date:09/11/2006 URL: http://www.thehindubusinessline.com/2006/11/09/stories/2006110901770600.htm

Back Bond prices gain 20 paise

Our Bureau

Mumbai, Nov 8

Bond prices jumped by almost 20 paise (yields dropped by about three basis points) on improved liquidity in the system. Total traded volumes on the order matching system also increased to Rs 8,305 crore (Rs 6,155 crore). "Liquidity has improved to around Rs 10,000 crore, helping the 10-year bonds to rise by almost 20 paise and 30-year bonds to rally by almost a rupee," said a dealer at a private bank. "News of the government planning to lower fuel prices in the domestic market added to the bullish sentiment," he added.

The bond yields also tracked US yields, which fell to 4.62 per cent (4.7 per cent). The 7.59 per cent 10-year 2016 paper opened at Rs 99.90 (7.60 per cent YTM) and closed at Rs 100.01 (7.58 per cent YTM) against Rs 99.82 (7.61 per cent YTM) on Tuesday. The 8.07 per cent 11-year 2017 paper opened at Rs 103.21 (7.61 per cent YTM) and closed at Rs 103.45 (7.57 per cent YTM) against Tuesday's Rs 103.19 (7.61 per cent YTM).