12% 1999 Gilt Dealt For Rs 35 Crore

NSE REPORT

The wholesale debt market segment (WDM) of the National Stock Exchange (NSE) yesterday witnessed dull trading interest with the total volume totalling Rs 129.94 crore. This was a 50 per cent fall from yesterday's volume of Rs 255.74 crore.

Trades were mostly restricted to papers between one to two years. Dealers said that prices moved in a narrow range and closed at the previous day's levels.

Following the 12.5 state government loan auction on Monday, which sucked out Rs 4,400 crore, they had expected the yield rates to go up substantially. However, this did not happen. The call rate continued to range between 9.25-9.50 per cent indicating that there was no dearth of liquidity. Dealers feel that the large repo outstanding must have been drawn down to make up for the liquidity short falls.

The 12 per cent paper, maturing in 1999, was traded for Rs 35 crore at a weighted yield of 10.78 per cent as it gained five paise over the previous days close. The floating rate +1.25 per cent 1999 paper traded for Rs 10 crore yielding a weighted yield of 10.87 per cent. Another Rs 15 crore changed hands for the 11.40 per cent 2000 paper at a weighted yield of 11.46 per cent. There were some deals in zero coupons.

The zero coupon 2000 (series II) and 2000 (series III) traded for Rs 3 crore and 20 crore, respectively, at weighted yields of 11.50 per cent and 11.48 per cent, respectively. There was one 14 day repo deal in the 11.55 per cent 2001 paper at 9.4 per cent.