The Hindu Business Line : SLR status issue weighs on bonds

Bond prices fell by around 30-60 paise as Friday's jitters about oil bonds being given SLR (Statutory Liquidity Ratio) status continued to keep traders anxious. Total traded volumes on the order-matching system were at Rs 5,595 crore (Rs 7,620 crore). Dealers said that there was heavy selling seen in longer dated securities. Traders who had built up strong positions in the recently auctioned 8.33 per cent-28 year-2036 paper were selling off.

Market participants were also concerned about the shortage of cash in the system. "Liquidity is under pressure as several T-bill, State loan and government security auctions have drained out cash from the system," said a dealer at a private bank. The 7.99 per cent-9 year-2017 paper opened at Rs 103.28 (7.49 per cent YTM) and ended at Rs 102.94 (7.54 per cent YTM), against the previous close at Rs 103.2 (7.51 per cent YTM). The 8.33 per cent-28 year-2036 paper opened at Rs 106.30 (7.77 per cent YTM) and ended at Rs 105.35 (7.85 per cent YTM), against the previous close at Rs 105.99 (7.8 per cent YTM). - Our Bureau

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