Bonds slip further, call rate ends lower

The overnight call money rate finish lower at 7.60% from 8.00% on Wednesday. It moved in a range of 8.30 per cent and 7.50%

Government bonds prices maintained its downtrend on heavy selling from banks and corporates and the overnight call money rates also ended lower at the overnight call money market here on Thursday due to lack of demand from borrowing banks amidst ample liquidity in the banking system.

The 8.83 per cent government security maturing in 2023 dipped to Rs 100.0375 from Rs 100.34 previously, while its yield climbed to 8.82 per cent from 8.77 per cent. The 8.28 per cent government security maturing in 2027 dropped to Rs 92.76 from Rs 92.17, while its yield gained to 9.22 per cent from 9.17 per cent. The 8.12 per cent government security maturing in 2020 also fell to Rs 95.18 from Rs 95.40, while its yield moved-up to 9.08 per cent from 9.03 per cent. The 7.28 per cent government security maturing in 2027, the 8.24 per cent government security maturing in 2027 and the 7.16 per cent government security maturing in 2023 were also quoted down at Rs 93.09, Rs 92.5975 and Rs 87.4750, respectively.

The overnight call money rate finish lower at 7.60 per cent from 8.00 per cent on Wednesday. It moved in a range of 8.30 per cent and 7.50 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 346.65 billion in 53-bids at the 1-day repo auction at a fixed rate of 8.00 per cent Thursday morning, while sold securities worth Rs 11.55 billion from 8-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent as on Wednesday evening.