Trading in the wholesale debt market of the National Stock Exchange (NSE) is expected to pick up next week, considering the amount of liquidity in the system. "There may be a rally in prices, especially of near term maturities, by 10-15 paise" said a market player. Banks, which have received a part of the RIB funds may also start purchasing securities as a temporary parking slot for the funds. There may also be demand for corporate paper and bonds floated by financial institutions, which provide attractive returns. On Saturday, prices of securities went up, particularly in papers maturing in year 2000. The 11.64 per cent 2000 was traded at a weighted yield of 11.23 per cent for a volume of Rs 35 crore.
There was a drop in the price of the 11.98 per cent 2004 security, which was traded at a weighted yield of 12.02 per cent.
The average daily volumes also dipped from Rs 253.92 crore to Rs 126.53 crore. The weighted yield on government paper with maturity within three years, 3-7 years and 7-10 years were 11.10 per cent, 11.95 per cent and 12.25 per cent, respectively. The 91-day treasury bills maturing on October 10 was traded at a weighted yield of 9.05 per cent.
