Date:30/11/2007 URL: http://www.thehindubusinessline.com/2007/11/30/stories/2007113051500600.htm

Back Bond prices flat

Mumbai, Nov. 29

Bond prices were almost flat, as traders were cautious ahead of the State loan auction scheduled on Friday. Total traded volumes on the order-matching system were at Rs 2,715 crore. Dealers said that the lull was expected as prolonged selling in the past few days had caused the ten-year yield to harden from 7.88 per cent to 7.92 per cent. "Liquidity remains a concern and a bearish cut-off yield is expected in the Rs 5,500 crore State loan auction. This is the second state loan auction in 15 days," said a dealer at a private bank.

The 7.99 per cent- 10 year-2017 paper opened at Rs 100.45 (7.92 per cent YTM) and closed also at Rs 100.45 (7.92 per cent YTM), unchanged from Wednesday's close. The 6.65 per cent-2 year-2009 paper opened at Rs 98.58 (7.77 per cent YTM) and closed at Rs 98.54 (7.80 per cent YTM). - Our Bureau