Bonds recover on good demand

Government securities (G-sec) recovered on good buying support from banks and companies.

The 8.33 per cent G-sec maturing in 2026 surged to Rs 103.03 from Rs102.88 previously, while its yield edged down to 7.96 per cent from 7.98 per cent.

The 8.15 per cent G-sec maturing in 2022 climbed to Rs101.86 from Rs101.72, while its yield dipped at 7.86 per cent from 7.89 per cent. The 8.20 per cent G-sec maturing in 2025 also rose to Rs101.95 from Rs101.83, while its yield declined to 7.95 per cent from 7.97 per cent. The 8.07 per cent G-sec maturing in 2017, the 8.97 per cent maturing in 2030 and the 8.19 per cent maturing in 2020 also quoted higher at Rs 100.73, Rs108.50 and Rs101.20 respectively.

“With a 25 basis points rate cut, the chances of a rally in the bond yield levels are expected to be limited in the range of 7-8 bps as the market has broadly discounted the event,” said Shakti Satapathy, a fixed income analyst with AK Capital.

Call rates end higher

Call money rates finished higher at the overnight call money market here on Monday on good demand from borrowing banks.

The overnight rate closed higher at 8.10 per cent from 7.90 per cent previously. It moved in a range of 8.10 per cent and 7.80 per cent. The Reserve Bank of India under the liquidity adjustment facility purchased securities worth Rs 1,101.80 billion in 36 bids at the one-day repo auction at a fixed rate of eight per cent, while sold securities worth Rs 0.15 billion in one-bid at the one-day reverse repo auction at a fixed rate of seven per cent in the evening auction.