Bond drops on weak demand; call rates turn lower

The government bond (G-Sec) prices dropped following heavy selling by banks and market participants.
Interbank call money rate also turned 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 7.59 per cent maturing in 2026 fell to Rs 100.99 from Rs 101.01, while its yield held stable to 7.44 per cent.
The 7.88 per cent government security maturing in 2030 slipped to Rs 100.9475 as against Rs 101.17, while its yield gained to 7.77 per cent from 7.74 per cent.
The 7.59 per cent government security maturing in 2029 slid to Rs 99.55 from Rs 99.73, while its yield edged up to 7.64 per cent from 7.62 per cent.

The 7.72 per cent government security maturing in 2025, the 8.27 per cent government security maturing in 2020 and the 8.12 per cent government security maturing in 2020 were also quoted lower at Rs 100.57, Rs 103.07 and Rs 102.49 respectively.
The overnight call money rates turned lower at 6.20 per cent from 6.40 per cent yesterday. Its resumed higher at 6.65 per cent and moved in a range of 6.85 per cent and 6.10 per cent.
Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 148.94 billion in 30-bids at overnight repo auction at a fixed rate of 6.50 per cent this morning, while its sold securities worth Rs 23.53 billion from 24-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent late yesterday.