Date:04/07/2009 URL: http://www.thehindubusinessline.com/2009/07/04/stories/2009070450650600.htm

Back Bond prices up

Mumbai, July 3

Bond prices firmed up ahead of the Budget. While traders are building up positions , the fall in crude prices also helped, said a bond dealer with a private bank. The expectation now is that government borrowing may not be as high as it was earlier thought, he said. “The market should be comfortable with government borrowing of around Rs 30,000-40,000 crore. As the government has already borrowed Rs 18,000 crore, this would amount to an additional Rs 12,000 crore od d borrowing,” he said. The total traded volumes on the order matching system were lower at Rs 14,405 crore (Rs 19,920 crore). –

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