Date:15/08/2006 URL: http://www.thehindubusinessline.com/2006/08/15/stories/2006081501710600.htm

Back Bond prices fall slightly

Our Bureau

Mumbai, Aug. 14

Bond prices fell slightly reacting to the announcement of the Rs 8,000 crore government securities auction on August 18. The traded volume was lower at Rs 1,155 crore on the order matching system due to limited participation ahead of Independence Day holiday. Dealers said that the bond prices were also tracking the US yields where the ten-year inched up to 4.98 per cent. "The US retail sales data released on Friday was better than expected and caused the yields to rise. This, coupled with the announcement of the auction, caused a fall in prices," said a dealer at a private bank.

The 7.59 per cent- 10 year-2016 paper opened at Rs 96.30 (8.15 per cent YTM) and closed at Rs 96.36 (8.14 per cent YTM), compared to Friday's Rs 96.45 (8.12 per cent YTM). The 9.39 per cent-5 year-2011 paper opened at Rs 106.52 (7.75 per cent YTM) and ended at Rs 106.59 (7.74 per cent YTM) against Friday's close at Rs 106.5 (7.74 per cent).