Bonds continue to rule weak; call rates move down

The government bond (G-Sec) prices continued to rule weak on consistent selling pressure from banks and corporates.
The overnight call money rate dipped further on surfeit of liquidity in banking system.
The 8.83 per cent government security maturing in 2023 dropped to Rs 100.3900 from Rs 100.6325 previously, while its yield rose to 8.77 per cent from 8.73.
The 8.60 per cent government security maturing in 2028 declined to Rs 99.74 from Rs 99.9375, while its yield gained to 8.63 per cent from 8.61 per cent.
The 8.35 per cent government security maturing in 2022 fell to Rs 97.55 from Rs 97.64, while its yield moved-up to 8.79 per cent from 8.77 per cent

The 8.12 per cent government security maturing in 2020, the 8.28 per cent government security maturing in 2027 and 7.80 per cent government security maturing in 2020 were also quoted lower at Rs 96.92, Rs 96.00 and Rs 95.60, respectively.
The overnight call money rates ended lower at 8.20 per cent from yesterday's closing level of 8.95 per cent. It moved in range of 9.00 per cent and 8.00 per cent, respectively.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 219.65 billion in 58-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 14.57 billion from 14-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent yesterday evening.