 "Bonds, Govt bond")
The demand at the weekly government bond auction (or the primary market) was firm as traders stocked up on bonds at attractive yields, dealers said. However, the demand at the primary market didn't reflect back in the secondary market due to a lack of significant domestic cues.
"There were expectations that the secondary market would rally, but it didn't happen," a dealer at a primary dealership said. Some traders had bought securities on the view that the cut-off bond prices at the auctions would be higher than market expectations, but they were along the expected lines. So, a little bit of selling was also there in the secondary market, he added.
The Reserve Bank of India set the cut-off yield on the 3-year, 7-year, 14-year, and 30-year bond at 7.16 per cent, 7.17 per cent, 7.23 per cent, and 7.33 per cent, respectively. Prices and yields move inversely.
