GILTS & BONDS MARKET
Active trading is expected during the week due to the presence of ample liquidity in the system. With this, the pricing of the securities would firm up by 15 to 20 paise across the board. The inflow from the Resurgent India Bonds (RIB) will infuse liquidity in the money market, prompting massive trading interest.
"The Reserve Bank of India (RBI) may announce an auction this week to suck out excess liquidity," said a dealer. This week again, traders expect the medium term securities to be in the lime light. The secondary debt market will see an active trading volume of nearly Rs 350 crore.
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Last week, the Wholesale Debt Segment at the NSE witnessed a volume of Rs 2819.74 crore as against Rs 1937.70 crore the previous week. Average daily volume was Rs 469.96 crore as against Rs 322.95 crore. Last week, trading in government securities was to the tune of Rs 2405.78 crore, contributing 85 per cent of total trade, while the treasury bill segment contributed a volume of Rs 175.73 crore.
The government securities maturing within three years was traded at the weighted average yield of 10.68 per cent, between 3-7 years at 11.62 per cent and 7-10 years at 12.15 per cent.
The WDM on Saturday saw prices of government securities firming up by 10 to 15 paise. The day saw a volume of Rs 353.18 crore, of which the 11.55 per cent government loan maturing on 2001 was actively traded for Rs 165 crore. The paper saw 21 trades and was traded at the weighted average yield of 11.39 per cent.