Financial Daily from THE HINDU group of publications
Tuesday, Feb 05, 2002
Financial Daily from THE HINDU group of publications Tuesday, Feb 05, 2002 |
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Money & Banking
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Govt Bonds G-Sec prices bullish Our Bureau
MUMBAI, Feb. 4 THE rally in the bond market continued unabated with yields hitting new all-time lows as prices gained by around 30-40 paise over previous closing levels. However, profit-booking brought prices down by 20-25 paise from the day's highs to close 10-15 paise higher over previous levels. The 11.50 per cent 2011 paper closed at Rs 126.75 (YTM-- 7.58 per cent) as against its previous close of 126.60. This paper had touched a high of Rs 127 during th day. The 11.03 per cent 2012 paper, which had touched a high of Rs 125, closed at Rs 124.65 (YTM--7.55 per cent) as against its previous close of 124.50. The 9.85 per cent 2015 paper closed at Rs 118.10 as against its previous level of Rs 117.75. According to one dealer, "Market sentiment is bullish as the Government borrowing programme is nearly over. The RBI has not come with any OMO to arrest the falling yields and as yet there has been no auction announcement. All this has contributed to the continued rise in prices.'' Dealers expect the benchmark 10-year yield to fall to 7.50 per cent shortly and if the positive sentiment continues and the liquidity conditions prevail, the yields may fall further. In the inter-bank call money market, the call rates closed at 6.50-6.60 per cent. The RBI received and accepted eight bids of Rs 8,440 crore at 6.50 per cent.
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