Bonds decline on poor demand; call rates end higher

Government bonds (G-Secs) prices declined further on the back of sustained selling by corporates and banks.
While, the interbank call money market ended higher owing to fresh demand from borrowing banks amidst tight liquidity conditions in the banking system.
The 7.59 per cent government security maturing in 2026 dipped to Rs 98.87 from Rs 99.0750 previously, while its yield rose to 7.75 per from 7.72 per cent.
The 7.88 per cent government security maturing in 2030 dropped to Rs 98.73 as compared to Rs 98.9950, while its yield moved up to 8.03 per cent from 8.00 per cent.
The 8.27 per cent government security maturing in 2020 also fell to Rs 102.13 as against Rs 102.27, while its yield advanced to 7.68 from 7.64 per cent.

The 7.72 per cent government security maturing in 2025, the 7.68 per cent government security maturing in 2023 and the 7.59 per cent government security maturing in 2029 were also quoted lower at Rs 99.00, Rs 98.97 and Rs 96.77, respectively.
The overnight call money rates ended higher at 6.80 per cent from last Friday's level of 5.90 per cent after touching a intra-day high of 7.05 per cent. It resumed higher 6.96 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 184.39 billion in 51-bids at one-day repo auction at a fixed rate of 6.75 per cent this evening, while it sold securities worth Rs 82.42 billion from 35-bids at the reverse repo auction at a fixed rate of 5.75 per cent as on Feb 12.