Date:16/06/2006 URL: http://www.thehindubusinessline.com/2006/06/16/stories/2006061602340600.htm

Back Bond prices volatile

Our Bureau

Mumbai, June 15

The bond market opened weaker by about 20 paise on overnight declines in US treasury prices. However, prices went up in the last hour as there was buying. The 10-year benchmark paper saw a 30 paise movement. The 7.59 per cent-10 year-2016 paper opened at Rs 98.4 (7.82 per cent YTM) and ended at Rs 98.7 (7.78 per cent) against the previous close of Rs 98.65 (7.79 per cent YTM). The 9.39 per cent-5 year-2011 paper opened at Rs 108.05 (7.44 per cent YTM) and ended at Rs 108.14 against the previous close of Rs 108.19. "The market is awaiting the announcement of the auction to be held next week. There is also a concern that the US Fed may raise rates in its meeting on June 30. Liquidity is comfortable even with the impending advance tax outflow," said the dealer.