An Insipid Run On Bond St

Except for some select papers, there was not much movement in corporate bonds last week.With no fresh issues and lack of quality papers, the market remained subdued. There is also a lack of fresh demand which meant there were no big movements in prices.

The papers traded were the triple A ones but this trading too was limited to the market makers. Retail interest is very less as the investors do not gain much in terms of yield on these issues.

But by the end of the week, top papers did clock decent traded volumes as too much cash chased too few securities last week after remaining flat during the initial period.

Easy money and wider spreads over gilts pushed corporate bond yields lower on Friday, dealers said. Good demand seen in the oil and Unit Trust of India bonds, which are seen more liquid than other corporate bonds, and deals aggregating around Rs 275 crore were concluded, they said.

The 6.20 per cent UTI bond 2010 was dealt at 5.7621 per cent, down from Thursday