Government bond prices ended down On Thursday, breaking a six-day rising trend, as investors preferred to lock into profits, eyeing the sharp run-up in prices in the last few days.

Since November 20, the price of the 10-year benchmark 8.24 per cent, 2018 bond had risen by almost Rs 4. On Thursday, the 2018 paper settled at Rs 109.54 (6.8433 per cent yield to maturity)compared with Rs 110.01 (6.7790 per cent yield to maturity) on Wednesday.

Call steady at 6.15%
The call money rate ended steady On Thursday because liquidity was adequate to meet banks’ daily reserve requirements, dealers said.

The one-day call rate ended at 6.15-6.20 per cent compared with 6.15-6.25 per cent on Wednesday.

CBLOs ended at a weighted average rate of 5.47 per cent versus 5.30 per cent.

Ample liquidity and subdued demand held the call rate around RBI’s reverse repo rate of 6 per cent On Thursday.

“There is a lot of money floating in the banking system, which is keeping the call rate low. Demand is also easing, as banks have overcovered reserves for the Reporting Fortnight,” said a dealer at a state-owned bank.

CD issues subdued on rate cut hopes

Primary issuances of certificates of deposit (CDs) were down On Thursday as mutual funds refrained from any purchases due to limited inflows in their schemes.

Even banks refrained from issuing any papers on anticipation that the Reserve Bank of India (RBI) may cut key rates by Saturday, dealers said. Around Rs 200 crore of CDs were placed On Thursday in the market compared with Rs 700 crore on Wednesday. Banks were the only investors in this paper.

This week, banks have already raised around Rs 3,000 crore through CDs.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end higher led by rate sensitives - New rules to seize property of corrupt babus - BSES gets Rs 5,000-cr IDBI Bank loan to pay dues - Reliance MediaWorks Q3 net loss at Rs 151 cr - Investor wealth grows by Rs 10 lakh cr in 2012 rally

Read Business news in  Advertisements -  Now property search gets more exciting than ever before! -  IndianOil Citibank Card at Zero annual card fee -  High Growth Business Opportunities in Africa - Register to explore -  Save over Rs.3000 with IndianOil Citibank Card -  Office 365 for professionals and small businesses. -  We live for our family. have you secured them? -  Financial Learning now made easier and more convenient. -  India's No. 1 Property Site. Click here to know more.. -  Win a Business Class Ticket to Europe..Know more.. -  Exim Bank Conclave on India - Africa Project Partnership. Know more.. -  Enjoy the journey as much as the destination. click to know more.. -  Be part of it The World's Largest Aircraft. -  Creating Wealth made simple the SIP way. Know more.. -  Only Developer to give a guarantee on time space & rate. -  Buy Your Property with Our Triple Guarantee in India. -  Improve Patient Care & Experience. Click here to know more -   Introduce a New Automotive Luxury Car.. know more -  Health is Wealth..... Insurance + Savings... Know More...