Bond Prices Closed Flat - Jan 20, 2009

Bond prices closed flat since the markets are in a wait and watch mode ahead of the Credit Policy announcement by the RBI. According to a dealer with a private bank, markets are expecting a 50 basis points reduction in the repo and the reverse repo rates in the policy. Total traded volumes on the order matching system were at Rs 12,295 crore. The benchmark security opened at Rs 119 (5.58 per cent YTM) and touched an intra-day high of Rs 119.28 (5.54 per cent YTM). It closed at Rs 118.85 (5.60 per cent YTM), same as the previous day''s close. The 7.56 per cent-2014 paper opened at Rs 109.5 (5.61 per cent YTM) and closed at Rs 109.4 (5.63 per cent YTM).