Bonds, call rates firm up further

Government securities (G-Sec) firmed up further on sustained buying support from banks and companies, and call rates also ended higher at the overnight money market here on Tuesday due to renewed demand from borrowing banks following limited liquidity in the banking system.

The 8.79 per cent security (G-Sec) maturing in 2021 shot up further to Rs 101.8850 from overnight close of Rs 101.74, while its yield moved down to 8.50 per cent from 8.52 per cent. The 9.15 per cent security (G-Sec) maturing in 2024 hardened to Rs 104.5650 from Rs 104.35, while its yield declined to 8.55 per cent from 8.58 per cent.

The 8.19 per cent security (G-Sec) maturing in 2020 rose to Rs 98.7 from Rs 98.6, while its yield softened to 8.43 per cent from 8.44 per cent.

The overnight call money rate finished higher at 8.30 per cent from Monday's close of 8.15 per cent. It moved in a range of 8.40 per cent and eight per cent.

The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 84,460 crore from 38 bids at the one-day repo auction at a fixed rate of eight per cent.

The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 84,460 crore from 38 bids at the one-day repo auction at a fixed rate of eight per cent.