Re up, bond yields fall

Written by Agencies | Mumbai | Updated: Jun 28 2009, 02:42am hrs
The rupee strengthened by 50 paise to end at 48.10/11 against the dollar on hopes of resumption of capital inflows from foreign funds, triggered by strong recovery in equity markets, amidst the weakness of the dollar overseas.

In the global market, oil and metal prices rose on Friday, driving a rise for world stocks, while the US dollar and government bond prices slipped as investors gradually put funds back into riskier assets. US crude oil prices limped towards $71 a barrel, extending a 2% gain.

Bond yields fell for a second day as ample cash supported demand, but long bond yields rose over the week as traders worried about the government's borrowing plans for the fiscal year. The yield on the most traded 6.07%, 2014 bond ended at 6.50%, lower than Thursday's close of 6.53%. Over the week, the 2014 yield fell 14 basis ponts.

The yield on the benchmark 10-year bond 6.05%, 2019 bond, in which there were only 25 deals, ended at 6.99%, one basis point below its previous close.