Bonds drop on sustained selling, call rate improves

The government bond prices dropped further due to persistent selling pressure from banks and corporates, while call rates improved further to close at 6.90% at the overnight call money market here today on sustained buying support from borrowing banks.

The 8.08% government security maturing in 2022 declined to Rs 98.80 from 99.07 previously, while its yield moved up to 8.24% from 8.21%.

The 7.80% government security maturing in 2021 dropped to Rs 98.71 from Rs 99.10, while its yield rose to 7.99% from 7.93%.

The 8.13% government security maturing in 2022 fell to Rs 99.21 from Rs 99.51, while its yield firmed up to 8.24% from 8.20%.

The 7.83% government security maturing in 2018, the 8.26% government security maturing in 2027, the 7.99% government security maturing in 2017 and the 7.80% government security maturing in 2020 were also quoted lower at Rs 98.86, Rs 98.15, Rs 99.70 and 98.30, respectively.
    
The overnight call money rate finished slightly higher at 6.90% from Wednesday's closing level of 6.85%. It moved in a range of 6.90% and 6.70%.
    
The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 3,875 crore from 12 bids at the three-days repo auction at a fixed rate of 6.75%.