JANUARY 31: Bond prices were a shade up on Monday. At close, the 11.83 per cent 2014 was seen at Rs 104.73 (Rs 104.66); 11.99 per cent 2009 at Rs 106.72(Rs 106.67) with the 12 per cent 2008 at Rs 106.87 (Rs 106.85). "There are good inflows this fortnight", a dealer said, adding: "There are good enough reasons to believe that bond prices will be on flat to upward trend this fortnight". I-Sec in its report said that liquidity will be balanced in the new fortnight."On February 1, the measures taken to ensure liquidity across Y2K event will be reversed and this will result in an outflow of about Rs 4,500 crore as vault cash becomes ineligible for cash reserve ratio purposes,." I-Sec said.
Dealers were of the view that tomorrow's reversal of Y2K liquidity may see call rates firm up a bit with bond prices holding flat in early trades. "Of course, if there is an auction, things will be different", a dealer said.
FORECAST: Bond prices seen holding flat on Tuesday.
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