Bonds remain bullish on steady demand

Government securities (G-sec) remained bullish on persistent demand from banks and companies. Their rally on Thursday was the highest as a lower-than-expected growth estimate for the current financial year ending March by the government and follow-on comments from the central bank chief boosted demand.

The 8.20 per cent G-sec maturing in 2025 surged to Rs 101.98 from Rs 101.65 yesterday, while its yield moved down to 7.95 per cent from 7.99 per cent.

The 8.33 per cent G-sec maturing in 2026 shot up to Rs 103.07 from Rs 102.76, while its yield declined by 7.95 per cent from 7.99 per cent. The 8.15 per cent G-sec maturing in 2022 also climbed to Rs 101.76 from Rs 101.57, while its yield eased to 7.88 per cent from 7.91 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 100.70, Rs 108.50 and Rs 101.12, respectively.

Call rates end lower

Call money rates ended lower at the overnight market here on Thursday due to lack of demand from borrowing banks.

The rate finished lower at 7.50 per cent from yesterday’s close of 7.90 per cent. It moved in a range of 7.95 per cent and 7.50 per cent.

The Reserve Bank of India under the liquidity adjustment facility purchased securities worth Rs 1,16,980 crore in 41 bids at the one-day repo auction at a fixed rate of 7.75 per cent and sold securities worth Rs 3,210 crore in four bids at the one-day reverse repo auction, at a fixed rate of 6.75 per cent.