Bonds continue to remain bearish, call rate ends higher

The government bond (G-Sec) extended its downtrend on sustained selling from banks and corporates.
Meanwhile, the overnight call money rate ended higher on fresh demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 fell to Rs 101.35 from Rs 100.66, while its yield climbed to 8.77 per cent from 8.72 previously.
The 8.12 per cent government security maturing in 2020 dropped to Rs 96.70 from Rs 96.96, while yield moved up to 8.80 per cent from 8.74 per cent.
The 8.35 per cent government security maturing in 2022 also dipped to Rs 97.40 as against Rs 97.69, while yield gained to 8.81 per cent from 8.76 per cent.

The 8.60 per cent government security maturing in 2028 also declined to Rs 99.40 as against Rs 99.76, while yield advanced to 8.67 per cent from Rs 8.63 per cent.

The 8.28 per cent government security maturing in 2027, 7.80 per cent government security maturing in 2020 and 7.28 per cent government security maturing in 2019 were also quoted lower at Rs 95.80, Rs 95.42 and Rs 94.63, respectively.
The overnight call money rates ended higher at 8.25 per cent from last Friday's level of 7.00 per cent. It moved in wide range of 8.25 per cent and 7.65 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 183.48 billion in 43-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 20.47 billion from 10-bids at the 3-days reverse repo auction at a fixed rate of 7.00 per cent last Friday.