Government bonds, call rates recover

Government securities (G-Sec) recovered on fresh buying support from banks and companies, and call rates also ended higher at the overnight money market here on Monday, due to good demand from borrowing banks.

The 8.79 per cent security (G-Sec) maturing in 2021 shot up to Rs 101.74 from last weekend's level of Rs 101.44, while its yield moved down to 8.52 per cent from 8.56 per cent.

The 9.15 per cent security (G-Sec) maturing in 2024 rose to Rs 104.35 from Rs 104.13, while its yield eased to 8.58 per cent from 8.60 per cent. The 8.19 per cent security (G-Sec) maturing in 2020 hardened to Rs 98.5750 from Rs 98.38, while its yield looked down to 8.44 per cent from 8.48 per cent.

The overnight call money rate finished higher at 8.15 per cent from last Friday's close of 8 per cent. It moved in a range of 8.45 per cent and 8.1 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,09,555 crore from 42 bids at the one-day repo auction at a fixed rate of 8.00 per cent while sold securities worth Rs 10 crore from two bids at the one-day reverse repo auction at a fixed rate of 7.00 per cent.