Bond Prices Shot Up - March 19, 2009

The bond prices shot up by around 40 paise on March 18 in anticipation of the Rs 10,000-crore buyback of government securities by the Reserve Bank of India. The central bank will buy Rs 3,000 crore of the 7.37 per cent-2014 paper along with Rs 3,000 crore worth 7.56 per cent-2014 paper and Rs 4,000 crore of 7.99 per cent-2017 paper on March 20. The total traded volumes on the order matching system were up at Rs 3,540 crore (Rs 2,985 crore). The 6.05 per cent-10-year 2019 paper opened at Rs 97 (6.46 per cent YTM) and closed at Rs 97.17 (6.43 per cent YTM) as compared to the earlier close of Rs 96.75 (6.5 per cent YTM). In line with this, the 8.24 per cent- 2018 paper opened at Rs 110.50 (6.67 per cent YTM) and closed at Rs 110.55 (6.67 per cent YTM) as against the previous close of Rs 110.25 (6.71 per cent YTM).