Bonds continue down-trend, call rates up

The Government bond (G-Sec) prices remained under intense selling pressure for the third consecutive day following sustained unwinding by banks and corporates.
While, call rates ruled firm at the overnight call money market on increased demand from borrowing banks amidst tight liquidity in the banking system.
The 8.40 per cent government security maturing in 2024 fell to Rs 102.48 from Rs 102.8550 yesterday, while its yield rose to 8.01 per cent from 7.95 per cent.
The 8.60 per cent government security maturing in 2028 dropped to Rs 104.1175 against Rs 104.67, while its yield moved up to 8.08 per cent from 8.01 per cent.

The 8.15 per cent government security maturing in 2026 dipped to Rs 100.51 compared to Rs 101.00, while its yield firmed up to 8.08 per cent from 8.01 per cent.
The 8.27 per cent government security maturing in 2020, the 7.72 per cent government security maturing in 2025 and the 8.83 per cent government security maturing in 2023 were quoted lower at Rs 100.92, Rs 99.48 and Rs 104.37 respectively.
The overnight call money rates finished higher at 7.30 per cent from Wednesday's closing level of 6.30 per cent after hovering between a range of 7.30 per cent and 6.25 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 20.67 billion in 6-bids at the 1-day repo auction at a fixed rate of 7.50 per cent this morning, while it sold securities worth Rs 37.29 billion from 27-bids at the 1-day reverse repo auction at a fixed rate of 6.25 per cent late yesterday.