Date:30/12/2006 URL: http://www.thehindubusinessline.com/2006/12/30/stories/2006123003040600.htm

Back Bond prices range-bound

Our Bureau

Mumbai, Dec. 29

Bond prices were range-bound today. Total traded volumes on the order marching system stood at Rs 1,260 crore (Rs 730 crore). "It was more of a `short-driven' rally, as nobody was interested in taking long positions," said a bond dealer.

Inflation as measured by the wholesale price index was higher at 5.43 per cent for the week ended December 16, against 5.32 per cent in the previous week. Yields rose a bit after the inflation figures were announced, said the dealer.

The 7.59 per cent 10-year 2016 paper opened at Rs 99.74 (7.63 per cent YTM), touched a high of Rs 99.88 (7.61 per cent YTM) and closed at Rs 99.80 (7.62 per cent YTM), against the previous close of Rs 99.70 (7.63 per cent YTM). The 8.07 per cent 11-year 2017 paper opened and closed at Rs 103.14 (7.62 per cent YTM) against the previous close of Rs 103.09 (7.62 per cent YTM). It touched a high of Rs 103.29 (7.59 per cent YTM) during the day. Yields on the 10-year benchmark paper are likely to touch 7.70-7.75 per cent next week if the liquidity crunch persists, said dealers.