Crr Cut Talks Send Nse Debt Turnover Soaring

The prices of most of the securities climbed up as banks started to buying securities in the morning. A dealer with the NSE said: In the morning there was a sudden rise in the rise in the price of the short dated securities. Today debt market trading is likely to pick up, some dealer said.

The 13.50 per cent central government security maturing in 1997 which last saw trading at Rs 100.42 on Wednesday saw a rise of 8 paise to Rs 100.50. The security being a market flavour saw the highest jump in prices as banks rushed to buy this one-year paper, a dealer said.

 

Curiously enough although there was activity in the 13.50 per cent central government security maturing in 1998 and the 13.62 per cent gilt maturing in 1998, there was hardly any trading in the 13.65 per cent government security maturing in the same year.

Dealers said that the prices of almost all the securities went up except for the newly-issued 13.82 per cent central government security maturing in 2002. Only this security traded at a discount, debt market dealers said.

The consequent rise in the prices of securities saw a drop in the yields on the government securities. The 13.50 per cent central government security maturing in 1997 was traded for Rs 40 crore at 13.12 per cent yields. The security last traded at 13.21 per cent yields on Wednesday.

The 113.50 per cent central government security maturing in 1998 was traded for Rs 115 crore at 13.47 per cent yields.