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Corporate bond market dull as traders stay off

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Newswire18 Mumbai
Last Updated : Jan 29 2013 | 2:34 AM IST

Trade was lacklustre, as there were very few buyers in the market today and as most traders refrained from purchasing secondary corporate bond papers, dealers said.

Dealers, expecting some primary issuances next week, are staying away from the market at present.

“Good amount of trade will take place next week as most of the dealers will then actively trade in the market. Most of them expect a few primary issuances next week,” said a dealer with a private bank.

Dealers expect yields to rise further if there are more primary issuances.

Today, Power Finance Corp’s five-year paper was quoted at 11.45-11.50%, but no deals were struck today. Last week also no deals had been struck.

According to Fixed Income Money Market Derivative Association’s reporting platform, around Rs 9 crore worth of bonds were traded today against Rs 87 crore on Monday.

Indian companies have raised $2.83 billion via external commercial borrowing (ECB) in September, the Reserve Bank of India said today. Of the total ECBs raised, $2.46 billion was raised via the approval route and $370.23 million via the automatic route.

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First Published: Oct 30 2008 | 12:00 AM IST

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