Bonds decline, call rates remain higher

The government bond (G-Sec) prices declined further on sustained selling from banks and corporates.
Meanwhile, the overnight call money rate remained higher due to firm demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 dropped to Rs 100.63 from Rs 100.83, while its yield moved up to 8.73 per cent from 8.70 per cent previously.
The 8.60 per cent government security maturing in 2028 fell to Rs 99.94 from Rs 100.28, while its yield gained to 8.61 per cent from 8.56 per cent.
The 8.12 per cent government security maturing in 2020 declined to Rs 97.1250 from Rs 97.31, while yield advanced to 8.71 per cent from 8.67 per cent.

The 8.35 per cent government security maturing in 2022, 8.28 per cent government security maturing in 2027 and 7.80 per cent government security maturing in 2020 were also quoted lower at Rs 97.7350, Rs 96.25 and Rs 95.72, respectively.
The overnight call money rates ended higher at 9.00 per cent from Monday's closing level of 8.75 per cent. It moved in range of 9.00 per cent and 8.00 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 208.54 billion in 52-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 25.69 billion from 13-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last Friday.