Wednesday, July 22, 2009

Bond Price Get Higher A Little Bit - July 22, 2009

The bond prices witness a marginal growth on July 21 amidst thin trading volumes. The prices surged in the first half of trade after US treasury yields fell but the prices fell on account of profit booking by investors, the dealer said. The trading volumes were thin as the investors are waiting for RBI''s credit policy.

The total traded volumes on the order matching system were lower at Rs 4,190 crore (Rs 7,995 crore).

RBI will purchase government securities of Rs 6,000 crore through an open market operation on Thursday, which was announced by the central bank after the market hours yesterday.

The 6.90 per cent-10 year-2019 paper opened at Rs 100.10 (6.88 per cent YTM) and closed at Rs 99.90 (6.91 per cent YTM) as against the previous close of Rs 99.87 (6.92 per cent YTM).

The 7.94 per cent-12 year-2021 paper opened at Rs 105.32 (7.26 per cent YTM) and closed at Rs 105.26 (7.26 per cent YTM) as against the previous close of Rs 105.20 (7.27 per cent YTM).

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