Bond prices close higher:BL 241209

Bond prices opened stronger and closed higher from the previous close on positive sentiments. But the
huge gains made by the equity markets prevented prices from rising further, said a bond dealer with a
private bank. After comments by the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia,
on Tuesday, it seems unlikely that a rate hike will happen before the January monetary, said the dealer. The
expectation is that a rate hike now could adversely impact credit demand. Therefore, the RBI may not take a
rate action immediately. The total traded volumes on the order matching system were higher at Rs 9,610
crore (Rs 8,965 crore).