Bonds decline; call rate recovers

The government bond (G-Sec) prices declined further due to sustained selling from banks and corporates.
While, the overnight call money rate recovered following good demand from borrowing banks amidst tight liquidity conditions in the banking system.
The 8.83 per cent government security maturing in 2023 dropped to Rs 100.89 from Rs 101.00, while its yield gained to 8.69 per cent from 8.67 per cent previously.
The 8.28 per cent government security maturing in 2027 fell to Rs 96.49 from Rs 96.65, while its yield moved-up to 8.73 per cent from Rs 8.71 per cent.
The 8.12 per cent government security maturing in 2020 declined to Rs 97.1675 from Rs 97.19, while its yield held stable to 8.70 per cent.

The 8.35 per cent government security maturing in 2022, the 7.80 per cent government security maturing in 2020 and the 8.24 per cent government security maturing in 2027 were also quoted lower at Rs 97.89, Rs 95.80 and 96.33, respectively.
The overnight call money rates finished higher at 7.90 per cent from yesterday's level of 7.05 per cent. It moved in range of 8.35 per cent and 7.65 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 117.34 billion in 27-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 87.56 billion from 18-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent, yesterday evening.