Bond drops on fresh selling pressure, call rate eases

Government bond prices dropped on heavy selling pressure from banks and corporates and call rates also finished lower at 5.65 per cent at the overnight call money market here today in view of ample liquidity in banking system.

The 7.80 per cent government security maturing in 2020 declined to Rs 99.43 from 99.82 yesterday, while its yield rose to 7.88 per cent from 7.82 per cent.

The 8.13 per cent government security maturing in 2022 slipped to Rs 101.19 from Rs 101.55, while its yield moved up to 7.97 per cent from 7.93 per cent.

The 7.17 per cent government security maturing in 2015 fell to Rs 98.03 from Rs 98.17, while its yield looked up to Rs 7.66 per cent from 7.63 per cent.

The 7.46 per cent government security maturing in 2017, the 7.27 per cent government security maturing in 2013 and the 8.26 per cent government security maturing in 2027 also ended lower at Rs 97.37, Rs 99.96 and Rs 99.10, respectively.

The call money rate ended lower at 5.65 per cent from yesterday's closing level of 5.75 per cent after moving in a range of 5.80 per cent and 5.60 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF), purchase of securities worth Rs 10,815 crore from five bids at the one-day repo auction at a fixed rate of 5.75 per cent.