Prices of government securities (G-Secs) saw a sharp correction as traders offloaded securities to create room for placing bids at Friday’s auction.
Price of the 10-year benchmark G-Sec/GS (coupon rate: 6.54 per cent) declined 50 paise to close at ₹95.7250 (previous close: ₹96.2250). Yield of this paper rose about 7 basis points to close at 7.156 per cent (7.0818 per cent).
Bond prices and yields are inversely co-related and move in opposite directions. One basis point is equivalent to 0.01 per cent.
The government plans to raise Rs 33,000 crore via auction of four G-Secs, including the 10-year benchmark G-Sec, on April 29.
Price of the 13-year G-Sec/GS (coupon rate: 6.67 per cent) fell about 31 paise to close at ₹94.3475 (₹94.655). Yield of this paper rose about 4 basis points to close at 7.3316 per cent (7.2941 per cent).