Date:28/11/2009 URL: http://www.thehindubusinessline.com/2009/11/28/stories/2009112851260602.htm

Back Bond prices weaken

Mumbai, Nov. 27

Bond prices opened higher but closed lower following the announcement of auction of Rs 10,000 crore of government securities and following statements by the Reserve Bank of India Governor that inflation is a worry and growth is a concern, said dealers. "Bonds opened higher but could not sustain. The recovery in the stock market was also another reason bond prices weakened,'' said a bond dealer with a private bank. The total traded volumes on the order matching system were to the tune of Rs 12,625 crore. The 6.90-10 year-2019 benchmark paper opened at Rs 98.25 (7.15 per cent YTM) and closed at Rs 97.99 (7.19 per cent YTM). The 6.35 per cent-11- year-2020 paper opened Rs 92.5 (7.42 per cent YTM) and closed at Rs 92.17 (7.47 per cent YTM).- Our Bureau