Date:04/07/2007 URL: http://www.thehindubusinessline.com/2007/07/04/stories/2007070452200600.htm

Back Corporate bonds trading

Mumbai, July 3

Trading of corporate bonds has gathered momentum on the bourses. As on the second day of trading, the total volume on the BSE has increased more than 10 times to Rs 273.75 crore as against Rs 23.85 crore recorded on Monday. About 24 bonds were traded on the BSE today, while 7 bonds were traded on Monday. Financial institutions were waiting for clarity to emerge on these trading platforms. According to bankers, they were keen to trade on the platforms soon that would lead t o transparency in the corporate bond market. The AAA- bond of Punjab National Bank with a coupon rate 8.45 per cent was last trading at Rs 90.2 with a weighted average yield of Rs 10.13. Also, the AAA- bond of SBI with a coupon rate of 10.2 per cent was last trading at Rs 100 with a weighted average yield of Rs 10.19. —

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