Bond Prices Rise Marginally - April 03, 2009

The bond prices on Wednesday shot up after the announcement by the Reserve Bank of India for the buyback of Rs 6,000 crore worth Government securities and the Market Stabilisation Scheme unwinding of Rs 33,000 crore. However, the volumes were low in the bond market because of the auctions lined up, said a dealer with a private bank. The total traded volumes on the order matching system were at Rs 8,640 crore.

The 6.05 per cent-2019-10-year benchmark paper closed at Rs 93.57 (6.96 per cent YTM) against Tuesday''s close of Rs 93.24 (7.01 per cent YTM). Moreover, the 7.46 per cent- 2017- eight-year paper opened at Rs 101.8 (7.17 per cent YTM) and closed at Rs 102.4 (7.07 per cent YTM).

Bond Prices Fall Steeply – March 31 , 2009

Bond prices plummet in intra-day trade on March 30 before rallying to recover some of its losses. The price of the benchmark security closed 40 paise lower after falling by more than Rs 1.50 in day trade. The prices dwindled after news reports quoted the Reserve Bank of India''s Deputy Governor, Dr Rakesh Mohan, saying that private placement of bonds with the RBI should be avoided. This sparked off supply concerns in the market, said a dealer with a private bank. Nevertheless, the markets recovered after expectation that the net supply of Government securities would be only around Rs 91,000 crore in the first half of the next fiscal and not as feared. After the redemptions and the open market operations, the net inflow would match the demand for the securities, the dealer added. Total traded volumes on the order matching system were higher at Rs 6,525 crore (Rs 4,190 crore). The 6.05 per cent-10-year-2019 paper opened at Rs 93.5 (6.97 per cent YTM) and fell to touch an intra-day low of Rs 92 (7.19 per cent YTM). It recouped its losses to close at Rs 92.8 (7.07 per cent YTM), against Thursday''s close of Rs 93.19 (7.01 per cent YTM). The second most highly traded paper, 7.46 per cent-2017 paper opened at Rs 101.75 (7.17 per cent) and closed at Rs 101.60 (7.20 per cent YTM).

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).

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).

Bond Prices Moved Lower - March 13, 2009

Bond yields arrived at the levels last seen in December 2008, with the yields on the 8.24 per cent crossing 7 per cent. According to the source, fears of excess supply and lack of trading interest pulled the bond market down. On March 12, bond prices whole day moved lower and closed about Rs 2 down than the previous close. Trading was extended by 30 minutes as the market waited for the Reserve Bank of India to announce the cut-offs for the buyback.

The cut-off yields announced by the RBI were higher than market expectations. The total traded volumes on the order matching system stood at Rs 6,320 crore (Rs 3,480 crore). The most highly traded 8.24 per cent- 2018 paper opened at Rs 109 (6.89 per cent YTM) and ended at Rs 107.05 (7.17 per cent YTM), against Monday''s close of closed at Rs 109.4 (6.83 per cent YTM). The 6.05 per cent-2019-10 year paper opened at Rs 95.5 (6.68 per cent YTM) and closed at Rs 94.25 (7.0 per cent YTM).

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).

Bond Prices Fell - Feb 11, 2009

The bond prices fell after the government announced it would borrow an additional Rs 46,000 crore, which was more than market expectations of about Rs 25,000-30,000 crore. On the order matching system, the total traded volumes were to the tune of Rs 6,795 crore. The 6.05 per cent 10-year 2019 benchmark paper opened at Rs 101.4 (5.86 per cent YTM) and closed at Rs 110.4 (5.99 per cent YTM). In line with this, the 8.24 per cent 2018 paper opened at Rs 113.5 (6.28 per cent YTM) and closed at Rs 112 (6.48 per cent YTM) as compared to the previous close of Rs 113.15.

Bond Prices Fell - Jan 28, 2009

The bond prices fell by around Rs 2 after the statement by the RBI Governor- Dr Subbarao that the Government may not stick to the borrowing calendar and could raise additional money depending on its requirements, according to the source. The borrowing could depend on the money coming in through the auction of the 3G spectrum, said the RBI Governor.

However, the yields went up to around 6 per cent. On the order matching system, the total traded volumes were lower at Rs 7,190 crore. The benchmark security opened at Rs 117.85 (5.72 per cent YTM) and touched an intra-day low of Rs 115.70 (5.99 per cent YTM) and it closed at Rs 115.95 (5.96 per cent YTM) as compared to the previous close of Rs 117.85 (5.72 per cent YTM). On the other hand, the 7.56 per cent-2014 paper opened at Rs 108.20 (5.86 per cent YTM) and closed at Rs 107.40 (6.01 per cent YTM).

Bond Prices Declined - Jan 22, 2009

On Jan 21, bond prices declined by Rs 1.60, after banks sold securities due to indications that further rate cuts by RBI are improbable. Total traded volumes on the order matching system were lower at Rs 7,350 crore (Rs 10,050 crore). The benchmark security opened at Rs 118.5 (5.64 per cent YTM) and touched an intra-day high of Rs 118.69 (5.61 per cent YTM). It closed at Rs 116.60 (5.88 per cent YTM), against the previous close of Rs 118.2 (5.68 per cent YTM). The 7.56 per cent-2014 paper opened at Rs 108.8 (5.74 per cent YTM) and closed at Rs 107.65 (5.97 per cent YTM).

Bond Prices Closed Lower - Jan 21, 2009

The bond prices closed lower on expectations that there could be extra government borrowing, which could lead to higher fiscal deficit. In line with this, the prices also fell on talks that the RBI in its monetary policy next week, is not expected to cut rates. On the order matching system, the total traded volumes were Rs 10,050 crore as against Rs 12,295 crore. The benchmark security closed at Rs 118.2 (5.68 per cent YTM), lower from the previous close of Rs 118.85 (5.60 per cent YTM). Along with this, the 7.56 per cent five-year 2014 paper closed at Rs 108.76 (5.76 per cent YTM).

Bond Prices Declined - Jan 8, 2009

Bond prices declined sharply after the announcement of the government''s additional borrowing programme of Rs 50,000 crore. The drop of more than Rs 5 in prices was more of an immediate reaction as the amount announced was more than expected, said the source. The RBI on Jan 6 announced the auction calendar for the period between January 5 and February 20.

This is over and above the original scheduled borrowing programme of the government. The bond market opened lower following this announcement. Later selling by banks to cut losses pulled down prices even more, during the day, said the dealer. Total traded volumes on the order matching system were lower at Rs 10,705 crore (Rs 15,860 crore). The 2018 benchmark security opened at Rs 119 (5.59 per cent YTM) and closed at Rs 116.75 (5.87 per cent YTM), against the previous close of Rs 121.3 (5.30 per cent YTM. It touched a low of Rs 115.15 (6.09 per cent YTM) during the day.

The 7.95 per cent 23-year 2032 paper opened at Rs 116 (6.60 per cent YTM) and closed at Rs 110.5 (7.03 per cent YTM) against the previous close of Rs 118.4 (6.42 per cent YTM. It touched a low of Rs 109.17 (7.14 per cent YTM) during the day.

Fall In Bond Prices - Jan 7, 2009

The bond prices on Jan 6 fell inthe volatile market as banks sold to take advantage of low yields, said dealers. The prices opened lower and moved downwards during the day. However, the total traded volumes were lower at Rs 15,860 crore (Rs 13,680 crore) on the order matching system. However, the 2018 benchmark security opened at Rs 122 (5.22 per cent YTM) and closed at Rs 121.3 (5.30 per cent YTM), as compared to the previous close of Rs 123.25 (5.07 per cent YTM). Apart from this, the 7.95 per cent 23-year 2032 paper opened at Rs 121.4 (6.21 per cent YTM) and closed at Rs 118.4 (6.42 per cent YTM).

Bond Prices Go Up On CRR Cut - Oct 13, 2008

Bond prices went up by over Re 1 after the Reserve Bank of India cut the CRR by an further 100 basis points. Bond yields closed about 20 basis points lower, which means Rs 1.2 higher. The cancelling of the Rs 10,000-crore auction of Government securities also aided the market as it would ease the liquidity in the system. However, bond prices came off the day''s high due to profit taking, towards the end of trade, said a bond dealer with a private bank.

Total traded volumes on the order matching system were Rs 9,640 crore. The 8.24 per cent -10 year-2018 paper opened Rs 102.4 (7.88 per cent YTM) and closed at Rs 102.95 (7.79 per cent), against Wednesday''s close of Rs 101.7 (7.98 per cent YTM). During the day it touched a high of Rs 104 (7.64 per cent YTM). The 7.94 per cent -13-year -2021 paper opened at Rs 97.5 (8.26 per cent YTM) and closed at 98.25 (8.16 per cent YTM). During the day it touched a high of Rs 99.35 (8.02 per cent YTM).

Bond Prices Opened Lower After The Reserve - Sep 30, 2008

Bond prices ended lower by about 50 paise from Sept 26 close on fears of tightness in liquidity, though they recovered from the day''s low. Banks have been borrowing close to around Rs 1 lakh crore from banks for the last few days. Today they borrowed more than Rs 90,000 crore via the repo auction. Total traded volumes on the order matching system were Rs 3,560 crore (Rs 5,900 crore).

Bond prices opened lower after the Reserve Bank of India declared the auction calendar for the second half of the fiscal on Sept 26. The 8.24 per cent-10 year-2018 paper opened at Rs 97.05 and touched an intra-day low of Rs 96.86. It closed at Rs 97.56, against the previous close of Rs 97.87. The 7.94 per cent -13 year-2021 paper, which was the second most actively traded paper, opened at Rs 91 and declined to a low of Rs 90.85. It closed at Rs 91.08