Bond drops on poor demand; call rates end lower

The government bond (G-Sec) prices dropped following selling pressure by banks and market participants.
Interbank call money rate also finished lower owing to lack of demand from borrowing banks on the back of adequate liquidity conditions in the banking system.
The 10-year benchmark bond 7.72 per cent maturing in 2025 moved down to Rs 99.1650 from Rs 99.2350, while its yield went up to 7.84 per cent compared with 7.83 per cent.
The 8.40 per cent government security maturing in 2024 slipped to Rs 102.40 against Rs 102.53, while its yield edged up to 8.02 per cent from 8.00 per cent.

The 7.68 per cent government security maturing in 2023 slid to Rs 97.70 from Rs 97.80, while its yield rose to 8.06 per cent from 8.04 per cent.
The 8.27 per cent government security maturing in 2020 and the 7.88 per cent government security maturing in 2030 were also quoted lower at Rs 100.96 and Rs 98.64 respectively.

The 8.83 per cent government security maturing in 2023 quoted Rs 104.90, while its yield were 8.13 per cent.
The overnight call money rates finished lower at 7.15 per cent from 7.25 last Friday's closing level. Its moved in a wide range of 7.25 per cent and 6.50 per cent.

Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 36.42 billion in 10-bids at overnight repo auction at a fixed rate of 7.25 per cent this morning, while its sold securities worth Rs 54.47 billion from 23-bids at the 3-days reverse repo auction at a fixed rate of 6.25 per cent at July 17.