Bonds declines, call rate remains bullish

The government bond (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 8.83 per cent 10-year benchmark bond maturing in 2023 dropped to Rs 99.7575 from Rs 99.95, while its yield gained to 8.87 per cent from 8.83 per cent previously.
The 8.40 per cent government security maturing in 2024 fell to Rs 98.3975 from Rs 99.6025, while its yield moved up to 8.64 per cent from 8.61 per cent.

The 8.60 per cent government security maturing in 2028 dipped to Rs 98.20 from Rs 98.5525, while its yield rose to 8.83 per cent from 8.78 per cent.
The 8.27 per cent government security maturing in 2020, the 8.12 per cent government security maturing in 2020 and the 7.28 per cent government security maturing in 2019 were also quoted lower at Rs 97.80, Rs 96.63 and Rs 94.29, respectively.
The overnight call money rates finished higher at 9.00 per cent from yesterday's closing level of 7.25 per cent. It moved in range of 9.05 per cent and 7.70 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 99.71 billion in 32-bids at the one-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 50.44 billion from 27-bids at the one-day reverse repo auction at a fixed rate of 7.00 per cent yesterday evening.