Gilt prices likely to rise across all maturities

 A dealer with a private sector bank said: "In the last week, the market remained dull because of the non-participation of most players. However, with the start of the new fiscal, volumes will rise and prices will move northward again." He said expectations of a cut in the bank rate in the credit policy to be announced on April 19 will be the driving force for a rally in security prices.

 The treasury head of a private sector bank, however, said: "Most of the trading will be at the below-10-year maturity segment. This is because yields of longer-term papers have already dipped a lot and the yield curve is pretty flat now. It is now the time for the short-end yields to move and correct the yield curve."

 According to dealers, the likely yield of the 10-year paper will be between 7.25 per cent and 7.45 per cent.

 On Saturday, government security prices went up by 70-75 paise in the morning. But the volume of trading was low and only a few market participants were operational.