Bonds surge, call rates end higher

Government securities (G-sec) gained further on sustained buying support from banks and companies and the overnight call money market rates also ended higher on fresh demand from borrowing banks.

The 8.83 per cent 10-year benchmark bond maturing in 2023 climbed to Rs 100.60 from Rs 100.48 previously, while its yield moved-down 8.73 per cent from 8.75 per cent.

The 8.12 per cent government security maturing in 2020 gained to Rs 95.1425 from Rs 95.05, while yield eased to 9.09 per cent from 9.11 per cent.

The 7.28 per cent government security maturing in 2019 also moved-up to Rs 93.37 from Rs 93.19, while yield moved down to 8.89 per cent from 8.93 per cent.

The 8.28 per cent government security maturing in 2027, the 7.16 per cent government security maturing in 2023 and the 8.24 per cent government security maturing in 2027 were also quoted higher at Rs 93.06, Rs 87.57 and Rs 92.90, respectively. The overnight call money rate finished higher at 8.15 per cent from 7.10 per cent on Monday and it moved in a range of 8.35 per cent and 7.50 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 308.25 billion in 48-bids at the one-day repo auction at a fixed rate of 8.00 per cent today morning, while sold securities worth Rs 65.39 billion from 16-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last Friday.