Date:26/05/2006 URL: http://www.thehindubusinessline.com/2006/05/26/stories/2006052603040600.htm

Back Bonds weaken

Our Bureau

Mumbai, May 25

The bond prices were slightly lower as there was huge amount of selling pressure. The negative factors included fears of a rise in fuel prices in India and the overall bearishness in June when the US Federal Reserve goes in for a hike in interest rates, said dealers. Yields on the 7.59 per cent 10-year 2016 paper rose to 7.61 per cent at close, a tad higher than the previous yield of 7.6 per cent or price of Rs 99.85. The paper had opened at Rs 99.86 (7.6 per cent YTM). The 7.94 per cent 15-year paper 2021 paper opened at Rs 99.95 (7.95 per cent YTM) and closed at Rs 99.99 (7.94 per cent YTM), unchanged from the previous close. However, trade volumes were huge with the 10-year benchmark 7.59 paper seeing volumes of Rs 1,380 crore and the 15-year 7.94 paper seeing volumes of Rs 660 crore, said a dealer with a private bank. "Bond traders held on to these levels and did not sell as there is good liquidity," he said.