Bond yields off lows, rupee nosedives
Sunday, 9 May 2010
MUMBAI, May 8 (Reuters): Government bond yields ended off day's lows as traders booked profits after a sharp fall in yields due to risk aversion as euro zone debt worries impacted market sentiment, dealers said.
Dealers said details of next week's $2.6 billion bond auction would be watched for cues and this would set the tone for trading in the week starting May 10.
The yield on the most traded 7.02 per cent bond maturing in 2016 ended at 7.48 per cent, down 2 basis points on the day after falling as low as 7.37 per cent during trade its lowest in more than five weeks.
The new 10-year bond, the 7.80 per cent maturing in 2020, closed at 7.64 per cent, one basis point down, off the day's low of 7.50 per cent.
The benchmark 10-year bond yield ended up two basis points at 7.99 per cent after hitting the day's low of 7.85 per cent. Volumes were a heavy Rs 190.65 billion ($4.2 billion) on the central bank's trading platform.
"Some profit booking had to be done after the sharp fall in yields and traders also don't want to carry positions over the weekend as they want to watch global developments," said Parijat Agrawal, head of fixed income at SBI Funds Management in Mumbai.
Dealers said details of next week's $2.6 billion bond auction would be watched for cues and this would set the tone for trading in the week starting May 10.
The yield on the most traded 7.02 per cent bond maturing in 2016 ended at 7.48 per cent, down 2 basis points on the day after falling as low as 7.37 per cent during trade its lowest in more than five weeks.
The new 10-year bond, the 7.80 per cent maturing in 2020, closed at 7.64 per cent, one basis point down, off the day's low of 7.50 per cent.
The benchmark 10-year bond yield ended up two basis points at 7.99 per cent after hitting the day's low of 7.85 per cent. Volumes were a heavy Rs 190.65 billion ($4.2 billion) on the central bank's trading platform.
"Some profit booking had to be done after the sharp fall in yields and traders also don't want to carry positions over the weekend as they want to watch global developments," said Parijat Agrawal, head of fixed income at SBI Funds Management in Mumbai.