Bonds decline on fresh selling pressure

Government bonds declined on fresh selling pressure from banks and corporates and call rates also ended lower at 7.70 per cent at the overnight call money market here on Tuesday due to lack of demand from borrowing banks.

The 7.80 per cent government security maturing in 2021 slipped to Rs 97.16 from 97.37 yesterday, while its yield moved up to 8.22 per cent from 8.19 per cent. The 8.13 per cent government security maturing in 2022 dropped to Rs 98.55 from 98.82, while its yield rose to 8.33 per cent from 8.29 per cent. The 8.08 per cent government security maturing in 2022 fell to Rs 98.23 from 98.45, while its yield firmed up to 8.33 per cent from 8.29 per cent.

RUPEE GAINS
The rupee rose on speculation that exporters are repatriating income to take advantage of a favorable exchange rate, and as concern Greece will default on its debt eased.

The MSCI Asia-Pacific Index of regional shares climbed for the first time in a week after Luxembourg Prime Minister Jean-Claude Juncker said Greek Prime Minister George Papandreou had assured him that his government would take the steps needed to obtain financial aid. The rupee strengthened 0.4 percent to 44.84 per dollar as of the 5 p.m. close in Mumbai, according to data compiled by Bloomberg.

CALL RATE RECOVERS
The call rate ended lower at 7.70 per cent at the overnight call money market here on Tuesday due to lack of demand from borrowing banks. The call money rate’s overnight closing level stood at 7.80 per cent.