Date:03/03/2006 URL: http://www.thehindubusinessline.com/2006/03/03/stories/2006030303010600.htm

Back Prices flat in bond market

Our Bureau

Mumbai, March 2

In the bond market, traded volumes were under Rs 1,000 crore and prices were flat.

Dealers said the uncertainty regarding whether the Rs 15,000 crore G-sec auction in March will take place has meant that there is little trading interest in the market.

A dealer at a private bank said that the conversion of recap bonds of nationalised banks to SLR bonds would increase the supply in a market that is already lacklustre.The 8.07-11 year-2017 paper opened at Rs 104.87 (7.41 per cent YTM) and closed at Rs 104.91 (7.40 per cent YTM), tad lower than Wednesday's at Rs 104.93 (7.40 per cent YTM).

The 9.39 - 5 year-2011 paper opened at Rs 109.72 (7.16 per cent YTM) and ended at Rs 109.85 (7.13 per cent YTM), higher than Wednesday's close at Rs 109.75 (7.15 per cent YTM).