Bonds drop, call rates turn lower on selling pressure from banks

The 7.17% 10-year benchmark bond maturing in 2028 dipped to Rs 96.30 from Rs 96.58, while its yield edged up to 7.71% from 7.67%

Government bonds (G-Secs) dropped on sustained selling pressure from banks and corporates and the overnight call money rates also turned lower due to lack of demand from borrowing banks amid comfortable liquidity in the banking sytem.

The 7.17 per cent 10-year benchmark bond maturing in 2028 dipped to Rs 96.30 from Rs 96.58, while its yield edged up to 7.71 per cent from 7.67 per cent.

The 6.68 per cent government security maturing in 2031 went-down to Rs 89.4750 from Rs 89.79, while its yield moved up to 7.96 per cent from 7.92 per cent.

The 6.79 per cent government security maturing in 2027 declined to Rs 92.9050 from Rs 93.23, while its yield rose to 7.88 per cent from 7.83 per cent.

The 6.84 per cent government security maturing in 2022, the 8.20 per cent government security maturing in 2022 and the 8.27 per cent government security maturing in 2020 were also quoted lower to Rs 97.4475, Rs 102.5925 and Rs 102.7750 respectively.

The overnight call money rates finished lower to 5.70 per cent from Tuesday's closing level of 6.00 per cent. It resumed higher at 6.05 per cent and moved in a range of 6.10 per cent and 5.70 per cent.

Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 36.27 billion in 6-bids at the overnight repo auction at a fixed rate of 6.00 per cent today morning, while it sold securities worth Rs 56.06 billion in 43-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on February 20.