Bonds decline, call rates end lower

The government bond (G-Sec) prices declined on the back of fresh selling pressure from banks and corporates amidst profit-taking by market participants.
The call money rates also ended lower at the overnight call money market here today due to subdued demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.40 per cent 10-year benchmark bond maturing in 2024 fell to Rs 103.9450 from Rs 104.4450, while yield went up to 7.80 per cent from 7.72 per cent.
The 8.60 per cent government security maturing in 2028 dropped to Rs 106.4375 from Rs 107.04, while its yield rose to 7.81 per cent from 7.74 per cent.

The 8.15 per cent government security maturing in 2026 fell to Rs 103.27 from Rs 103.71, while its yield moved up to 7.72 per cent from 7.66 per cent.
The 8.27 per cent government security maturing in 2020, the 8.83 per cent government security maturing in 2023 and the 8.28 per cent government security maturing in 2027 also quoted lower at Rs 101.63, Rs 105.82 and Rs 103.04, respectively.
The overnight call money rates ended lower at 6.50 per cent from overnight closing level of 6.85 per cent, it moved in a range to 6.90 per cent and 6.50 per cent. The 3-days call money rate finished at 6.75 per cent, it moved in a wide range to 7.70 per cent and 6.50 per cent previously.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 154.17 billion in 38-bids at the 3-days repo auction at a fixed rate of 7.50 per cent today morning, while it sold securities worth Rs 34.05 billion from 18-bids at 1-day reverse repo auction at a fixed rate of 6.50 per cent, March 12.