Bonds decline, call rates end higher

Government bonds (G-Secs) declined further on sustained selling pressure from banks and corporates while, the overnight call money rate ended higher at the money market due to good demand from borrowing banks amidst tight liquidity in the banking system.
The 8.40 per cent government security maturing in 2024 fell to Rs 102.83 from Rs 102.88 previously, while its yield edge-down to 7.96 per cent from 7.95 per cent.
The 8.15 per cent government security maturing in 2026 declined to Rs 101.12 from Rs 101.22, while its yield inched up to 8.00 per cent from 7.99 per cent.
The 8.27 per cent government security maturing in 2020 also dipped to Rs 101.1625 from Rs 101.1950, while its yield held stable at 7.98 per cent.

The 8.83 per cent government security maturing in 2023 and 7.88 per cent government security maturing in 2030 and 7.16 per cent government security maturing in 2023 were also quoted lower to Rs 104.74, Rs 99.71 and Rs 94.87, respectively.
However, the 8.60 per cent government security maturing in 2028 moved up to Rs 104.8650 from Rs 104.86, while its yield held steady at 7.99 per cent.
The overnight call money rates ended higher at 7.00 per cent from previous closing level of 6.0 per cent. It moved in a wide range of 7.80 per cent and 6.25 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 186.31 billion in a 45-bids at the 1-day repo auction at a fixed rate of 7.50 per cent as on today, while it sold securities worth Rs 66.12 billion from 36-bids at the overnight reverse repo auction at a fixed rate of 6.50 per cent as on May 12.