January 24: Bond prices ruled weak weakened on profit-taking by players on Monday. Talk of a fresh bond auction to sterilise Rs 3,000 crore of redemptions on February 3 led to some offloading by players. Dealers said that the state loan auction on Monday, which will lead to outflows to the tune of Rs 636 crore aided the bearish sentiment.Four state governments are raising the amount through a ten-year bond at 11.30 per cent. Prices in the long-end securities fell by 15-20 paise while in the short-end eased by 4-5 paise. Dealers said the bond prices had bottomed out at this level and expect buying support from players in the coming days. At close, the 11.83 per cent 2014 was traded at Rs 104.50 (Rs 104.65); 11.99 per cent 2009 at Rs 106.48 (Rs 106.67) with the 12 per cent 2008 at Rs 106.79 (Rs 106.87).
FORECAST: Bond prices may rule firmer on Tuesday.
(Compiled by Anurag Joshi)
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