GILTS & BONDS Market
Prices of government securities are expected to be stable while the market will see thin trading volume this week.
Since the tax outflow is estimated at around Rs 6,000 crore, call money rates are likely to be tight during the first half of the week.
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Banks may sell securities to remain liquid, which may lead to fall in prices of securities. "Securities prices may move in the band of 5-10 paise," said a dealer.
However, trading interest in government securities is expected to emerge during the second half of the coming week since an inflow of over Rs 2,500 crore is expected with the 13.40 per cent 1999 security maturing.
The wholesale debt market of the National Stock Exchange saw trading volume of Rs 3,643.13 crore against volumes of Rs 7,645.18 crore in the previous week.
The number of trades too fell steeply to 599 against 1,220 in the previous week.
Last week, the average yield of government securities maturing under three years was 10.19 per cent, those before three and seven years was 10.81 per cent and between seven and 10 years was 11.29 per cent.
On Saturday, the prices of securities were range bound. The day saw 42 trades and volumes of Rs 265.08 crore.
The 12.40 per cent 2013 stock was traded in the band of Rs 105.36 and Rs 103.38.