Bond Prices Fell By 90 Paise - Feb 18, 2009

On the uncertainty over the open market operations to be conducted by the Reserve Bank of India, the bond prices fell by 90 paise on February 17. The prices are under pressure as the borrowing programme is going to lead to excess supply in the market, the source said. Along with this, the uncertainty on how the Government will finance the additional Rs 45,000-crore deficit also put pressure. The 6.05 per cent 10-year 2019 paper opened at Rs 100.2 (6.02 per cent YTM) and touched an intra-day low of Rs 99 (6.18 per cent YTM). It recovered marginally to close at Rs 99.30 (6.14 per cent YTM) as compared to the previous close of Rs 100.2 (6.02 per cent YTM). On the order matching system, the total traded volumes were at Rs 6.975 crore (Rs 7,030 crore).