Bonds firm up, call rates end lower

On Thursday, government securities (G-sec) firmed up on good buying support from banks and companies while the overnight call money market rates ended lower due to lack of demand from borrowing banks.

The 8.83 per cent 10-year benchmark bond maturing in 2023 shot up to Rs 100.22 from Rs 99.90 on Wednesday, while its yield fell to 8.79 per cent from 8.84 per cent.

The 8.12 per cent government security maturing in 2020 hardened to Rs 94.85 from Rs 94.60, while yield declined to 9.15 per cent from 9.21 per cent.

The 8.28 per cent government security maturing in 2027 also surged to Rs 92.63 from Rs 92.42, while yield moved down to 9.24 per cent from 9.27 per cent. The 7.28 per cent government security maturing in 2019, the 8.24 per cent government security maturing in 2027 and the 7.16 per cent government security maturing in 2023 were also ended higher at Rs 93.15, Rs 92.40 and Rs 87.40, respectively.

The overnight call money rate finished lower at 7.05 per cent from 8.50 per cent Wednesday after moving in a wide range of 8.10 per cent and 6.60 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 224.60 billion in 33-bids at the one-day repo auction at a fixed rate of 8.00 per cent today morning, while sold securities worth Rs 25.54 billion from 17-bids at the one-day reverse repo auction at a fixed rate of 7.00 per cent last evening.