Bond Prices Closed Lower - Jan 21, 2009

The bond prices closed lower on expectations that there could be extra government borrowing, which could lead to higher fiscal deficit. In line with this, the prices also fell on talks that the RBI in its monetary policy next week, is not expected to cut rates. On the order matching system, the total traded volumes were Rs 10,050 crore as against Rs 12,295 crore. The benchmark security closed at Rs 118.2 (5.68 per cent YTM), lower from the previous close of Rs 118.85 (5.60 per cent YTM). Along with this, the 7.56 per cent five-year 2014 paper closed at Rs 108.76 (5.76 per cent YTM).