Bonds decline; call rate ends higher

The government bond (G-Sec) prices declined further on sustained selling pressure from banks and corporates, while the overnight call money rates ended higher at the money market due to good demand from borrowing banks amid tight liquidity in the banking system.
The 8.60 per cent government security maturing in 2028 dropped to Rs 99.50 from Rs 99.75 previously, while its yield gained to 8.66 per cent from 8.63 per cent.
The 8.40 per cent government security maturing in 2024 fell to Rs 99.25 from Rs 99.3850, while its yield moved up to 8.51 per cent from 8.49 per cent.
The 8.83 per cent government security maturing in 2023 also moved down to Rs 100.65 from Rs 100.75, while its yield edged-up to 8.72 per cent from 8.71 per cent.

The 8.27 per cent government security maturing in 2020, the 8.28 per cent government security maturing in 2027, the 8.24 per cent government security maturing in 2027 and 7.16 per cent government security maturing in 2023 were also quoted lower at Rs 98.40, Rs 96.29, Rs 96.10 and Rs 90.49, respectively.
The overnight call money rates ended higher at 8.10 per cent from 7.70 per cent yesterday. It moved in a range of 8.70 per cent and 7.50 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 85.23 billion in 30-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while its sold securities worth Rs 166.91 billion from 31-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent, last Friday.