Bonds drop, call rate turns lower

Government bonds (G-sec) prices dropped further due to selling pressure from banks and corporates and the overnight call money rate also ended lower owing to lack of demand from borrowing banks amid ample liquidity in the banking system.
The 7.59 per cent 10-year benchmark bond maturing in 2026 went down to Rs 100.7950 from Rs 100.8050, while its yield held stable at 7.47 per cent.
The 7.88 per cent government security maturing in 2030 slipped to Rs 100.9750 from Rs 100.9775, while its yield ruled steady at 7.76 per cent.
The 7.59 per cent government security maturing in 2029 declined to Rs 99.17 from Rs 99.23, while its yield inched up to 7.69 per cent from 7.68 per cent.

The 7.68 per cent government security maturing in 2023, the 7.61 per cent government security maturing in 2030 and the 7.35 per cent government security maturing in 2024 also quoted lower at Rs 100.5150, Rs 99.5250 and Rs 98.5050, respectively.
The overnight call money rates turned lower at 6.00 per cent from Thursday's level 6.10 per cent. It resumed higher at 6.55 per cent and moved in a range of 6.60 per cent and 6.00 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 65.52 billion in 19-bids at the 3-days repo auction at a fixed rate of 6.50 per cent today morning, while it sold securities worth Rs 81.96 billion from 40-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent late yesterday.