Bonds snap rise on fresh selling

Government securities (G-secs) snap-ped their north-bound journey and reacted downwards on fresh selling by banks and companies.

The 8.79 per cent G-sec maturing in 2021 dropped to Rs 102.97 from Rs 103.41 yesterday, while its yield shot up to 8.34 per cent from 8.28 per cent. The 9.15 per cent G-sec maturing in 2024 also dipped to Rs 105.45 from Rs 106.05, while its yield rose to 8.45 per cent from 8.37 per cent previously.

The 7.80 per cent G-sec maturing in 2021 too fell back to Rs 96.66 from Rs 96.90, while its yield firmed up to 8.32 per cent from 8.28 per cent. The 7.83 per cent G-Sec maturing in 2018, the 8.08 per cent G-Sec maturing in 2022 and the 8.13 per cent G-Sec maturing in 2022 also moved down to Rs 97.54, Rs 98.10 and Rs 98.2525, respectively.

The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 1,64,915 crore from 70 bids at one-day repo auction at a fixed rate of 8.50 per cent.

Call rate recovers
The call rate recovered at the overnight call money market on Wednesday, owing to a shortage of funds. The rate closed strong at 9.65 per cent, compared with 9.40 per cent yesterday. It moved in a range of 9.75 per cent and 9.45 per cent.