Mumbai, Nov. 23

The bond prices fell by seven paise and the yields went up by one basis point on Friday as the cut-off yields of the government securities auction was lower than market expectations, said a dealer with a private bank. “Though the liquidity was comfortable the market is wary that the RBI would announce auctions thereby draining out surplus cash from the system,” said the dealer. Dealers, however, feel that the market would rally on Monday if the central bank doe s not announce any auctions under the Market Stabilisation Scheme. The total traded volumes on the order matching system were at Rs 2,635 crore (Rs 1,280 crore). The 7.99 per cent-10-year-2017 paper opened at Rs 100.70 (7.88 per cent YTM) and closed at Rs 100.63 (7.89 per cent YTM), against the previous close of Rs 100.70 (7.88 per cent YTM). The 8.20 per cent-2022 paper opened at Rs 100.23 (8.17 per cent YTM) and closed at Rs 100.38 (8.15 per cent YTM), against the previous close of Rs 100.21 (8.17 per cent YTM). —

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