Bonds drop, call rates end higher

Government bonds (G-Secs) dropped further on sustained selling pressure from banks and Corporates amidst profit-taking by market participants.
While, the overnight call money rate ended higher due to good demand from borrowing banks following tight liquidity in the banking system.
The 7.72 per cent 10-year benchmark bond maturing in 2025 fell to Rs 99.2950 from Rs 99.3750 previously, while its yield edged up to 7.82 per cent from 7.81 per cent.
The 8.40 per cent government security maturing in 2024 declined to Rs 102.6550 from Rs 102.6900, while its yield held stable to 7.98 per cent.
The 7.68 per cent government security maturing in 2023, dipped to Rs 98.2900 from Rs 98.3750, while its yield inched up to 7.96 per cent from 7.95 per cent.

The 7.88 per cent government security maturing in 2030, the 8.27 per cent government security maturing in 2020 and the 8.60 per cent government security maturing in 2028 were also quoted lower at Rs 99.0950, Rs 101.2550 and Rs 104.1800 respectively.
The overnight call money rates ended higher at 6.70 per cent from Wednesday's closing level of 6.60 per cent. It resumed higher at 7.00 per cent and moved in wide range of 7.28 per cent and 6.50 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 24.60 billion in 6-bids at the overnight repo auction at a fixed rate of 7.25 per cent today morning, while it sold securities worth Rs 29.58 billion from 22-bids at the reverse repo auction at a fixed rate of 6.25 per cent as on July 29.