Bond Prices Tumbled By About 70 Paise - March 18, 2009

The bond prices tumbled by about 70 paise on fears that extra supply of government securities will lead to a fall in demand for papers. There is an auction of Government securities worth Rs 10,000 crore. The RBI last week had cancelled an auction of Rs 12,000 crore worth securities as the bids were very low. The total traded volumes on the order matching system were Rs 2,985 crore (Rs 6,715 crore). The 6.05 per cent-10-year 2019 paper opened at Rs 97.25 (6.43 per cent YTM) and closed at Rs 96.75 (6.5 per cent YTM) as against the earlier close of Rs 97.45 (6.40 per cent YTM). In line with this, the 8.24 per cent- 2018 paper opened at Rs 110.01 (6.75 per cent YTM) and closed at Rs 110.25 (6.71 per cent YTM) as against the previous close of Rs 110.90 (6.62 per cent YTM).