Govt bonds fall slightly

Government bonds closed mixed on alternate bouts of demand and supply.

The 8.79 per cent government security maturing in 2021 fell back to Rs 99.74 from Rs 99.7550 yesterday, while its yield edged up to 8.84 per cent from 8.83 per cent. The 9.15 per cent government security maturing in 2024 also dropped to Rs 101.10 from Rs 101.3375, while its yield recovered to 9.0 per cent from per cent previously. The 7.80 per cent government security maturing in 2021 declined to Rs 93.43 from Rs 93.46, while its yield held steady at 8.84 per cent.

The 8.08 per cent government security maturing in 2022 edged up to Rs 94.50 from Rs 94.49, while its yield eased to 8.88 per cent from 8.89 per cent. The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 1,31,540 crore from 50 bids at a one-day repo auction at a fixed 8.50 per cent.

CALL RATE FALLS
The call rate declined on surfeit of liquidity in the banking system. The overnight call rate also turned negative to conclude at 8.65 per cent from 8.75 per cent before moving in a limited range of 8.75 per cent and 8.65 per cent.