Bond recovers smartly, call rate ends lower

The government bond (G-Sec) prices recovered smartly on fresh buying support from banks and corporates, while the overnight call rates ended lower due to lack of demand from borrowing banks.
The 8.60 per cent government security maturing in 2028 shot up to Rs 99.7450 from Rs 99.50 previously, while its yield moved down to 8.63 per cent from 8.66 per cent.
The 8.40 per cent government security maturing in 2024 hardened to Rs 99.4650 from Rs 99.25, while yield declined to 8.48 per cent from 8.51 per cent.
The 8.83 per cent government security maturing in 2023 also firmed up to Rs 100.93 from Rs 100.65, while its yield fell to 8.68 per cent from 8.72 per cent.

The 8.27 per cent government security maturing in 2020, the 7.16 per cent government security maturing in 2023 and the 8.28 per cent government security maturing in 2027 also rose to Rs 98.5350, Rs 90.67 and Rs 96.63,respectively.
The overnight call money rates finished lower at 7.00 per cent from 8.10 per cent yesterday. It moved in a wide range of 8.00 per cent and 5.50 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 102.82 billion in 23-bids at the 6-days repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 277.28 billion from 30-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent, yesterday evening.