Bonds declines, call rates end higher

Government bonds (G-Sec) dropped further on sustained selling pressure from banks and corporates.
While, the call money rates gained owing to good demand from borrowing banks driven by ample liquidity conditions in the banking system.
The 7.72 per cent 10-year benchmark bond maturing in 2025 fell to Rs 99.5450 from Rs 99.5975 previously, while its yield held steady at 7.78 per cent.
The 7.88 per cent government security maturing in 2030 dropped to Rs 99.6375 from Rs.99.6950, while its yield ruled stable at 7.92 per cent.
The 8.40 per cent government security maturing in 2024 moved down to Rs 102.8450 from Rs 102.9100, while its yield edged up to 7.95 per cent from 7.94 per cent.

The 8.27 per cent government security maturing in 2020, 7.35 per cent government security maturing in 2024 and the 7.49 per cent government security maturing in 2017 were also quoted lower at Rs 101.3950, Rs 96.2950 and Rs 99.5750 respectively.
The overnight call money rates ended higher at 7.25 per cent from its last Friday's level of 6.90 per cent. It resumed higher at 7.10 and moved in range of 7.35 per cent and 6.80 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 54.73 billion in 9-bids at the 1-day repo auction at a fixed rate of 7.25 per cent today morning, while it sold securities worth Rs 29.47 billion from 17-bids at the overnight reverse repo auction at a fixed rate of 6.25 per cent as on August 29.