Bonds decline, call rates finish higher

Government bonds (G-Secs) declined following selling pressure from banks and corporates banks, while the Inter-bank call money rates recovered at the money market due to good demand from borrowing banks on the back of tight liquidity in the banking system.
The 7.59 per cent government security maturing in 2026 fell to Rs 100.43 from Rs 100.6550 previously, while its yield rose to 7.52 per cent from 7.49 per cent.
The 7.88 per cent government security maturing in 2030 dipped to Rs 100.7050 from Rs 100.9150, while its yield gained to 7.79 per cent from 7.77 per cent.
The 7.59 per cent government security maturing in 2029 dropped to Rs 98.76 as against Rs 99.0250, while its yield climbed to 7.74 per cent from 7.71 per cent.

The 8.27 per cent government security maturing in 2020, the 7.68 per cent government security maturing in 2023 and the 7.35 per cent government security maturing in 2024 were also quoted lower to Rs 103.1675, Rs 100.25 and Rs 98.27, respectively.
The overnight call money rates ended higher at 6.50 per cent from last Friday's closing level of 6.00 after moving in a range of 6.60 per cent and 6.20 per cent.
Meanwhile, Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 29.45 billion in 5-bids at the overnight repo auction at a fixed rate of 6.50 per cent, this evening.

While it sold securities worth Rs 176.99 billion from 64-bids at the 3-day reverse repo auction at a fixed rate of 6.00 per cent as on June 10.