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Bonds decline on tax outflow speculation

Bonds decline on tax outflow speculation
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First Published: Wed, Sep 05 2007. 12 07 AM IST
Updated: Wed, Sep 05 2007. 12 07 AM IST
Mumbai: Government bonds fell, ending two days of gains, on speculation a tax outflow this month will prompt investors to demand higher yields at a debt sale scheduled at the end of the week. The 10-year bond yield, which moves inversely to price, rose as companies prepared to pay their third quarterly installment of advance taxes by 15 September. The government may collect as much as Rs350 billion, said Suresh Pai, chief of fixed-income at state-owned Canara Bank Ltd. “That has the potential to affect debt sales. Investors will look to buy bonds at cheaper rates.” Bloomberg
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First Published: Wed, Sep 05 2007. 12 07 AM IST
More Topics: Government bonds | Money Matters | Bonds |