G-secs shoot up on sustained buying

Government securities (G-sec) shot up further on sustained buying by banks and companies. The 8.79 per cent G-sec maturing in 2021 jumped to Rs 102.65 from Rs 101.7 yesterday, while its yield dipped to 8.38 per cent from 8.52 per cent.

The 9.15 per cent G-sec maturing in 2024 also leaped to Rs 105.53 from Rs 104.52, while its yield tumbled to 8.42 per cent from 8.55 per cent previously. The 8.19 per cent G-sec maturing in 2020 improved to Rs 99.5 from Rs 98.9, while its yield dropped to 8.28 per cent from 8.38 per cent. The 8.24 per cent G-sec maturing in 2018, the 8.28 per cent G-sec maturing in 2027 and the 8.97 per cent G-sec maturing in 2030 also settled remarkably higher at Rs 99.56, Rs 97.56 and Rs 103.4, respectively.

Call rates drop sharply
Call rates dropped sharply on Thursday on excess liquidity in the banking system amid lack of demand from borrowing banks. The overnight call money rate concluded sharply lower at 7.8 per cent from 8.2 per cent, before moving in a range of 8.25 per cent and 7.50 per cent.

The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 85,310 crore from 36 bids at the one-day repo auction at a fixed rate of eight per cent and sold securities worth Rs 1,810 crore at four bids at the one-day reverse repo auction at a fixed rate of seven per cent.