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Journalism of Courage
Gilts (government securities) prices fell and yields moved up in the money market on Friday, indicating further upward pressure on interest rates.
With pressure on liquidity and a rise in inflation to 7.38 per cent for the week ended October 23, the 11-year 7.38 per cent 2015 stock plunged by 188 paise to Rs 101.25/33 with the yield surging by 25 basis points to 7.21 per cent
The 7.37 per cent 2014 bond nose-dived by 175 paise to Rs 101.10/20 and yield touched 7.19 per cent and the actively traded 8.07 per cent 2017 paper plummetted by 190 paise to Rs 105.75/106.00.
The yields in government securities market rose to record peaks on the back of relentless selling and gilts across the spectrum tumbled by over 100-220 paise, following the overnight announcement by the Centre of a hike in domestic fuel prices, said dealers.
Newly active 6.65 per cent 2009 bond tumbled by 138 paise to Rs 99.55/65, 7.40 per cent 2012 stock slipped by 105 paise to Rs 191.64/68 and the 7.27 per cent 2013 gilt dipped by 157 paise to Rs 100.28/30.
At the longer end, the 6.28 per cent 2018 gilt crashed by 205 paise to Rs 90.75/91.25, the 6.05 per cent 2019 stock tumbled by 180 paise to Rs 88.00/25 and the 8.35 per cent 2022 paper plunged by 205 paise to Rs 108.50/109.00.
The rupee closed at 45.18 per dollar, barely changed from Thursday’s 45.2, the highest finish in five months.
