GILTS & BONDS Market
The gilts and the bond market is likely to witness active trading in the short and the medium term securities this week. This is on account of the low call rates that are likely to prevail.
If the call rates continue to rule in the region of three per cent it is expected that there will be increased activity in the treasury bills and dated securities, a dealer said.
According to a primary dealer, the nationalised banks have been actively buying medium term securities for purely investment purposes. Thus the 13.82 per cent 2002 is also likely to be actively traded.
On the shorter end securities maturing up to 1999 are expected to be see a fairly good amount of trading.
According to a bank treasury head, the 13.40 per cent 1999 has shown an upward trend and this is expected to persist. The 13.50 per cent 1997 and the 13.50 per cent are also expected to be heavily traded.
If call rates prevail at lower levels the banks will continue to invest in government securities, said a treasury head. State government securities and the long term gilts will also continue to be picked by the provident funds.
