Bond Prices Decline By Declare - Oct 15, 2008

Bond prices declined by Re 1 on fears that the RBI will declare an SLR cut, as this would decrease demand for the Government securities. Another factor was the view that with the stock markets staging a recovery, the RBI unlikely to cut rates aggressively. Total traded volumes on the order matching system were lower at Rs 3,405 crore.

The 8.24 per cent-10 year-2018 paper opened at Rs 102.7 and reached an intra-day low of Rs 101.76 . It closed at Rs 101.95, against the previous close of Rs 102.93. The second highly traded security, 7.94 per cent-13 year-2021 paper, opened at Rs 97.6 and closed at Rs 96.5.

Bond Prices Decline On RBI Move - Sep 18, 2008

Bond prices opened lower in the morning after the Reserve Bank of India permitted additional borrowing by banks, against their SLR securities, as it is tantamount to lower SLR. But prices increased later on, as the additional liquidity coming into the market was seen as positive. The RBI move effectively means that banks can keep 24 per cent SLR instead of 25 per cent. RBI is perhaps getting banks prepared for lower SLR requirement. About Rs 33,000 crore additional liquidity will come into the market, which is 1 per cent of the net demand and time liabilities of banks, as allowed by RBI. Total traded volumes on the order matching system were at Rs 5,715 crore. The 8.24 per cent-10 year-2018 paper opened at Rs 100.5 and closed at Rs 100.3, against the previous close of Rs 100.97. During day trade it touched a high of Rs 100.74 . The 8.24 per cent-19 year-2027 paper opened at Rs 96.90 and closed at Rs 96.95. During the day it touched a high of Rs 97.6