Bond Prices Declined - Jan 22, 2009

On Jan 21, bond prices declined by Rs 1.60, after banks sold securities due to indications that further rate cuts by RBI are improbable. Total traded volumes on the order matching system were lower at Rs 7,350 crore (Rs 10,050 crore). The benchmark security opened at Rs 118.5 (5.64 per cent YTM) and touched an intra-day high of Rs 118.69 (5.61 per cent YTM). It closed at Rs 116.60 (5.88 per cent YTM), against the previous close of Rs 118.2 (5.68 per cent YTM). The 7.56 per cent-2014 paper opened at Rs 108.8 (5.74 per cent YTM) and closed at Rs 107.65 (5.97 per cent YTM).