Date:22/04/2005 URL: http://www.thehindubusinessline.com/2005/04/22/stories/2005042202010600.htm

Back Bonds volatile; rupee in range

Our Bureau

MUMBAI: The bond market was very active on Thursday with trade volumes soaring to Rs 5,500 crore ahead of the Reserve Bank of India's monetary policy next week. The market opened 20 paise higher and felllater as the Indian inflation data showed a rise, raising fears that interest rates may harden.

The 8.07 per cent - 12 year-2017 paper, which is the most actively traded paper rose to Rs 105.50 and finally closed lower at Rs 105.10 (7.40 per cent YTM), which was the same level as yesterday's closing.

The 7.50- 29 year-2034 paper opened at Rs 96.50, rose to Rs 97.50 and finally closed at Rs 96 (7.76 per cent YTM).

The 7.38-10 year-2015 benchmark paper saw few trades and remained steady at Rs 102.25 (7.08 per cent YTM). On Wednesday, it had closed at Rs 102.15 (7.05 per cent YTM).

The rupee remained range-bound against the dollar. It opened at 43.74/75 inching down to 43.76 and then moving up to settle at 43.75/7525 for the rest of the day as against the previous close of 43.75/76.

In the forward premia market, the 12-month premium closed at 1.48 per cent (1.45 per cent) while the 6-month premium ended unchanged at 1.75 per cent.

The call rate remained steady at 4.60 to 4.75 per cent. In the one-day reverse repo under the Liquidity Adjustment Facility, RBI received and accepted 36 bids amounting to Rs 31,745 crore. The CBLO market saw 148 trades aggregating Rs 4,930.85 crore in the rate range of 4.5-4.8 per cent.