Thursday, September 25, 2008

Sudden Announcement Of Auction Of Government - Sep 25, 2008

Bond prices slipped by Rs 1.20, following the sudden announcement of auction of government securities for Rs 10,000 crore. The announcement for auctions of 7.94 per cent-13 year-2021 paper worth Rs 6,000 crore and the 8.28 per cent-24 year-2032 paper for Rs 4,000 crore was unexpected for sure. The two-day bank strike along with the bearish sentiment prevailing in the market led to low trading volumes, added the dealer. Total traded volumes on the order matching system were lower at Rs 4,220 crore (Rs 6,470 crore). The 8.24 per cent-10 year-2018 paper opened at Rs 98.0 (8.54 per cent YTM) and closed at Rs 97.5 (8.62 per cent YTM), against the previous close of Rs 98.68 (8.44 per cent YTM)

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