Gilts

Bond prices went higher by nearly 15 paise on Monday. The 12.40 per cent 2013 was traded at Rs 106.25 in mid-morning deals compared to Rs 105.95 on Friday evening with the 12.32 per cent 2011 at Rs 105.95 Rs 105.75. quot;In noon trades, bonds staged a mild rally after call rates fell to a lower close at 8.0-8.10 per cent from their earlier highs, dealers said.

The price of the newly issued 11.83 per cent 2014 corrected itself marginally and traded at Rs 102.30 from Saturday8217;s Rs 102.35. The Reserve Bank had on Saturday set a cut-off price of Rs 102.18 at its price-based auction of 11.83 per cent 2014.

quot;Payout from the re-issue of the 11.83 per cent 2014 for Rs 5,000 crore saw call rates moving up to 8.25 per cent levels, but this did affect sentiment in the bond market, there is a feeling that liquidity will be comfortable and that call rates will return to 8 per cent levels even in intra-day trades.

FORECAST: Bond prices seen going higher on Tuesday.