Bonds decline, call rates recover

The government bond (G-Sec) prices declined further due to sustained selling from banks and corporates.
While, the overnight and the three-day call money rate recovered on good demand from borrowing banks amidst tight liquidity in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 fell to Rs 101.51 from Rs 101.6050, while its yield moved up to 8.75 per cent from 8.73 previously.
The 8.12 per cent government security maturing in 2020 dipped to Rs 96.99 as against Rs 97.05 yesterday, while its yield edged up to 8.74 per cent from Rs 8.73 per cent.
The 8.28 per cent government security maturing in 2027 also looked down to Rs 95.90 from Rs 95.95, while its yield inched up to 8.81 per cent from 8.80.

The 7.16 per cent government security maturing in 2028, 8.35 per cent government security maturing in 2022 and the 8.60 per cent government security maturing in 2028 were also quoted lower at Rs 89.30, Rs 97.56 and Rs 99.3875, respectively.
The overnight call money rate ended higher at 8.00 per cent from yesterday's close of 7.10, it moved in a range of 8.30 per cent to 8.00 per cent per cent. The 3-days call money rate also gained to 8.70 per cent as against 8.50 per cent last Friday. It moved in a range of 8.95 per cent and 7.80 per cent earlier.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 54.83 billion in 22-bids at the 3-days repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 103.19 billion from 26-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.