Bonds decline further; call rate remains bullish

The government bonds (G-Sec) declined further due to selling pressure from banks and corporates amid profit-taking by market participants.
Meanwhile, the overnight call money rate remained higher due to sustained demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.40 per cent 10-year benchmark bond maturing in 2024 dropped to Rs 99.4450 from Rs 99.5350, while its yield inched up to 8.48 per cent from 8.47 per cent yesterday.
The 8.60 per cent government security maturing in 2028 fell to Rs 99.8400 from Rs 99.9300, while its yield moved up to 8.62 per cent from 8.60 per cent.

The 8.83 per cent government security maturing in 2023 moved down to Rs 100.8450 from Rs 100.9425, while its yield slightly up to 8.69 per cent from 8.68 per cent.
The 8.27 per cent government security maturing in 2020, the 8.28 per cent government security maturing in 2027 and the 7.28 per cent government security maturing in 2019 were also quoted lower at Rs 98.70, Rs 96.48 and Rs 95.2750, respectively.
The overnight call money rates finished higher at 8.00 per cent from yesterday's closing level of 7.60 per cent. It moved in range of 8.08 per cent and 7.50 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 57.89 billion in 20-bids at the one-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 29.36 billion from 14-bids at the one-day reverse repo auction at a fixed rate of 7.00 per cent yesterday evening.