Date:26/10/2007 URL: http://www.thehindubusinessline.com/2007/10/26/stories/2007102650360601.htm

Back Bond prices up on buying

Mumbai, Oct 25

The bond market saw yields softening and prices rising on expectations that the RBI may not hike the CRR and genuine buying. As the cut-off yields for the auctions of the two government papers re-issued today were above expectations, it fuelled buying, said a bond dealer. There was some selling seen towards the close of trade, at around 5 p.m., after the announcement on participatory notes by the SEBI chief. But the market recovered immediately, which indicates that impact on bonds would be minimal, the dealer added.

Total traded volumes on the order matching system were higher at Rs 6,165 crore (Rs 2,810 crore). The 7.99 per cent -10-year 2017 paper opened at Rs 101.07 (7.83 per cent YTM) and closed at Rs 101.17 (7.81 per cent YTM) against the previous close of Rs 101.11 (7.82 per cent YTM). The 7.49 per cent -10-year 2017 opened at Rs 97.57 (7.86 per cent YTM) and closed at Rs 97.63 (7.85 per cent YTM) against the previous close of Rs 97.52 (7.86 per cent YTM). - Our Bureau