Trading in government securities ended weak last week. On Friday, prices fell by 30-35 paise due to reports of US airstrikes on Iraq. Liquidity in the banking system continued to remain easy.
On Monday, government security yields got aligned with that of 7.40 per cent 2012 paper as the Reserve Bank of India (RBI) had set a higher cut-off yield of 7.18 per cent compared with the then market yield of 7.15 per cent.
Gilts looked up in the following three days with the prices of medium-term papers rising by an average 15-20 paise. The conversion of ad hoc treasury bills worth Rs 7,000 crore into 2005 and 2013 papers late on Tuesday impacted Wednesday