Thursday, April 16, 2009

Bond Prices Close Higher On The Support Of Prospect - April 16, 2009

Bond prices closed on a steady note on the back of expectations that there could be some action by the Reserve Bank of India in the Credit Policy, next week. The action may not necessarily be a cut in interest rates. It could be a cap on the funds banks can park in RBI through reverse repo, the source said.

The trading activity in the bond market was high, due to which the yields on the 10-year benchmark government security fell, said a bond dealer with a private bank. The total traded volumes on the order matching system were at Rs 12,980 crore (Rs 9,340 crore).

The 6.05 per cent-10-year-2019 paper opened higher at Rs 95.25 (6.72 per cent YTM) and closed at Rs 96.06 (6.60 per cent YTM). The 7.56 per cent-2014 paper, opened at Rs 105.05 (6.46 per cent YTM) and closed at Rs 105.7 (6.32 per cent YTM), against the previous close of Rs 104.86 (6.50 per cent YTM).

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