Bonds yields ended little changed on Monday, with concerns about the lack of clarity on the government?s borrowing plans and worries about when the central bank could start tightening policy offset by ample cash. The yield on the most traded 6.07%, 2014 bond closed at 6.65%, up one point from Friday?s closing of 6.64%. There were no trades in the benchmark 10-year bond on the day.Volumes were a moderate at Rs 4,975 crore on the central bank?s trading platform.Meanwhile, rupee fell to its lowest in a month, weakened by a fall in share prices and demand for dollars from importers as the US currency strengthened ahead of a policy meeting of the Federal Reserve. It ended at 48.62/63 per dollar, off an intraday trough of 48.75. The rupee ended about 1.1% lower than Friday?s close of 48.09/10. ?There are no positives for the bond market right now except that the liquidity in the system is quite high,? said a senior trader at a state-run bank.?This is the reason the play is at the shorter end of the curve, but the longer end may see a further sell-off,? he said.
Bond prices decline further
Bonds yields ended little changed on Monday, with concerns about the lack of clarity on the government?s borrowing plans and worries about when the central bank could start tightening policy offset by ample cash.
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This article was first uploaded on June twenty-three, twenty nine, at thirty-one minutes past one in the night.