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Money & Banking - Govt Bonds


Bond prices fall

Our Bureau

Mumbai, Feb. 24

Bond prices fell, as there was no fresh buying ahead of the State loan auction of Rs 3,700 to be held on February 27.

Though in the first-half bond prices appreciated by about 10 paise, there was sell off in the second session, said a dealer with a private bank. "The market will look at the budgeted borrowing figures for next year. I don't expect the market to appreciate much as the borrowing is likely to be same as last year," the official said.

The 8.07 per cent 11-year 2017 paper opened at Rs 105.19 (3.36 per cent YTM) and touched a high of Rs 105.31 before ending trade at Rs 105.07 (7.38 per cent YTM) lower than Thursday's close of Rs 105.15 (7.37 per cent YTM).

The 9.39 per cent 5-year 2011 opened at Rs 110.20 (7.06 per cent YTM) and touched a high of Rs 110.30 before ending at Rs 109.85 (7.14 per cent YTM), 30 paise down from the previous close of Rs 110.15 (7.08 per cent YTM).

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