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Wednesday, Jun 01, 2005

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Bonds up on buying support

Our Bureau

Mumbai , May 31

BOND prices moved up by around 15-30 paise in the government securities market on Tuesday on buying support as prices of crude oil eased and US yields moved down. However, volumes were low ahead of the auction, said dealers.

A dealer at a private bank said, "The market is dull as people are waiting for the news of the auction. That is why volumes in Government securities were at Rs 3,500 croreas against the usual of around Rs 4,000 crore." There is speculation that the upcoming auction could be a floater, said a dealer.

The 8.07 12-year 2015 paper ended at Rs 107.60/65 (7.10 per cent YTM) against Monday's close of Rs 107.30/35 (7.13 per cent YTM). It had opened at Rs 107.30/40 (7.13 per cent YTM).

The 7.55 5-year 2010 paper ended at Rs 103.20 (6.78 per cent YTM), against Monday's close of Rs 103.10/12 (6.80 per cent YTM). It had opened at Rs 103.10/15 (6.80 per cent TYM).

The 7.38 10-year 2015 benchmark paper closed at Rs 102.90 (6.98 per cent YTM) against the previous close of Rs 102.80/85. It had opened at Rs 102.70/75 (7 per cent YTM).

Call rates were unchanged between 4.95 to 5.05 per cent.

The CBLO market saw 185 trades being put through in the rate range of 4.01 to 5.05 aggregating to Rs 6,754.35 crore.

In the one-day reverse repo auction, under the Liquidity Adjustment Facility, RBI received and accepted 39 bids amounting to Rs 22,880 crore.

The rupee continued its downward trend due to the strengthening of the US dollar globally. It closed the day at 43.76/77 against Monday's close of 43.59/60. The forward premia market was also lower, though it picked up later. The 12-month premium closed at 1.09 per cent (1.04 per cent) and the 6-month premium ended at 1.09 per cent (1.08 per cent).

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