Bonds continue to rule firm, call rate declines

Government bonds (G-Sec) prices firmed up further on sustained demand from corporates and market participants on hopes of a rate cut by the Reserve Bank of India (RBI) in view of fall in inflation figure.
Interbank call money rate dropped further on lack of demand from borrowing banks.
The 8.40 per cent government security maturing in 2024 moved up to Rs 103.18 from Rs 103.13 while its yield ruled steady at 7.90 per cent.
The 7.88 per cent government security maturing in 2030 firmed up to Rs 99.8750 from Rs 99.70 while its yield eased to 7.89 per cent from 7.91 per cent.

The 7.68 per cent government security maturing in 2023, the 8.27 per cent government security maturing in 2020 and the 7.35 per cent government security maturing in 2020 also were quoted higher at Rs 98.77, Rs 101.56 and 96.47 respectively.
The overnight call money rates ended lower at 6.50 per cent from yesterday's closing level of 7.00 per cent after rising to 7.25 per cent.
Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 25.86 billion in 11-bids at the 3-day overnight repo auction at a fixed rate of 7.25 per cent this morning while, its sold securities worth Rs 11.99 billion from 20-bids at the reverse repo auction at a fixed rate of 6.25 per cent late yesterday.