Bonds set for biggest monthly loss since June 2006

Date

Call rate
in %CBLO
in %Closing yield on
10-year paper in % 31-Mar-07 6.00 to 75 6.26 to 507.95 31-Mar-08 6.15 to 9.30 6.5 to 9.07.94 Special LAF session (net infusion+absorption*)
Rs 300 crore+ (March 2007)
Rs 3,645 crore* (March 2008)

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Source : RBI and Clearing Corporation of India Ltd data  Dealers explained that the banks will have to provide for the price erosion incurred on government securities with effect from December 2007 and not March 31, 2007 as the market portfolio is usually adjusted on a quarterly basis.  The banks