Bonds turn bearish, call rates end lower

Government securities (G-sec) turned bearish on selling pressure from banks and companies, and the call money rates also ended lower at the overnight call money market here on Thursday due to lack of demand from borrowing banks amid ample liquidity in the banking system.

The 8.83 per cent 10-year benchmark bond maturing in 2023 fell to Rs 100.05 from Rs 100.3175 previously, while its yield climbed to 8.82 per cent from 8.78 per cent. The 8.12 per cent government security maturing in 2020 declined to Rs 95.0675 from Rs 95.21, while its yield moved up to 9.11 per cent from 9.08 per cent.

The 7.28 per cent government security maturing in 2019 also dipped to Rs 93.27 from Rs 93.34, while yield edged-up to 8.92 per cent from 8.90 per cent.

The 8.28 per cent government security maturing in 2027, the 8.24 per cent government security maturing in 2027, and the 8.07 per cent government security maturing in 2017-July were also quoted-down at Rs 93.01, Rs 92.92 and Rs 98.25, respectively.

The overnight call money rate finished lower at 8.95 per cent from 9.00 per cent on Wednesday and moved in a range of 9.10 per cent and 8.65 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 409.03 billion in 61-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while sold securities worth Rs 24.02 billion from 16-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent Wednesday evening.