Bonds rise on fresh buying

Foreign investors remain net sellers, bringing total sales in the previous 25 sessions to $6.5 bn

Government securities rose on fresh demand from banks and companies. The 8.33 per cent government security maturing in 2026 rose to Rs 104.70 from Rs 104.40 yesterday, while its yield eased to 7.75 per cent from 7.79 per cent.  

Foreign investors remained net sellers, bringing their total sales in the previous 25 sessions to $6.5 billion, raising concerns about capital outflows given the weakening global sentiment towards emerging markets.

The 8.20 per cent government security maturing in 2025 gained to Rs 103.55 from Rs 103.37, while its yield dropped to 7.44 per cent from 7.77 per cent.

The 8.15 per cent government security maturing in 2022 advanced to Rs 102.66 from Rs 102.35, while its yield slipped to 7.73 per cent from 7.78 per cent. The 8.07 per cent government security maturing in 2017, the 7.16 per cent maturing in 2023 and the 8.12 per cent maturing in 2020 also quoted higher by Rs 101.07, Rs 97.26 and Rs 101.92, respectively.

Call rates end lower
Call money rates ended lower at the overnight market here today due to lack of demand from borrowing banks. The rates finished lower at 6.90 per cent from 7.40 per cent yesterday. It moved in a range of 7.30 per cent and 6.90 per cent.

The RBI under the Liquidity Adjustment Facility purchased securities worth Rs 59,640 crore in 25 bids at the one-day repo auction at a fixed rate of 7.25 per cent, while it sold securities worth Rs 6,975 crore in eight bids at the one-day reverse repo auction at a fixed rate of 6.25 per cent in the evening auction.