Budget Bounce For Yields, Loan Plan Pares Forex Kitty

Yields on government securities and corporate bonds edged up throughout last week.

Profit booking by banks and primary dealers, anxiety that the liquidity may dry up on account of the on-tap sale of 10-year state development loans and advance tax outflows, and the fear that US may attack Iraq shortly nudged the yields up.

In fact, the yields are back to their pre-Budget levels. The benchmark 10-year 9.81 per cent issue ended last week at a yield of 6.457 per cent. The yield on this paper has risen by 37 basis points from last Monday