Long-Term Bonds Are Becoming An Attractive - Oct 3, 2008

Bond prices increased on value-buying as long-term bonds are becoming an attractive asset class, given the weakening of equities. Expectations that the Reserve Bank of India unlikely to increase interest rates given the tight liquidity in the market also helped bond prices up. More numbers of foreign institutional investors are registering for infusing in the debt market. Total traded volumes on the order matching system were Rs 4,620 crore. The 8.24 per cent -10 year-2018 paper opened at Rs 97.8 and closed at Rs 98.6, against the previous close of Rs 97.73. It reached a high of Rs 98.84 during day trade. The 7.94 per cent -2021 paper opened at Rs 91.25 and closed at Rs 92.