Prices May Decline

GILTS & BONDS Market

The week ahead is likely to witness steady security prices or even a drop. This is because the calls are expected to range between six per cent at the start and gradually phase itself down over the week to around four per cent levels.

The calls opened on Saturday in the range of 4.5 per cent with most deals done around 5.5 per cent and but closed lower at five per cent with stray deals at 4.25 per cent being reported.

The wholesale debt market at the NSE saw a turnover of Rs 272.3 crore on Saturday, lowest during the week, which took the trading in this counter at the NSE to Rs 2993.69 crore. Government securities accounted for Rs 2213.18 crore, higher than the previous week's figures of Rs 2176.08 crore. This contributing 73.92 per cent of the turnover. The average traded volume during the week was Rs 498.95 crore .

 

The last week saw an increased interest in the medium and short-dated securities with maturities between 1999 and 2002. In the limelight were the 12.14 per cent government loan maturing in 2000 and the 12.69 per cent government loan maturing in 2002 . The yields on these securities were 11.85 per cent and 12.35 per cent respectively.

The government of India treasury bills maturing in April 1998 also saw considerable activity with yields dropping to 8.95 per cent from 9.35 per cent.