Government Resumes Its Spending Rumours - Oct 4, 2008

Bond prices increased due to huge purchasing interest in Government securities, as liquidity is hoped to ease once the Government resumes its spending. Rumours of a rate cut also assisted bond yields ease a bit. Lower oil rates were also a trigger for bond prices opening higher. The total traded volumes on the order matching system were Rs 6,465 crore. The 8.24 per cent-10 year-2018 paper opened at Rs 99.5 and ended at Rs 99.63, against Oct 1 close of Rs 98.6. The 7.94 per cent-2021 paper opened at Rs 93 and ended at Rs 93.79, against the previous close of Rs 92.