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 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).