Bonds drop, call rates recover

Government bonds (G-Secs) dropped further on sustained selling from banks and corporates amidst profit-taking by market participants.
Meanwhile, the call money rates recovered at the overnight call money market due to good demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.40 per cent 10-year benchmark bond maturing in 2024 slid to Rs 104.2425 from Rs 104.3250 previously, while its yield inched up to 7.75 per cent.
The 8.60 per cent government security maturing in 2028 fell to Rs 106.85 from Rs 106.93, while its yield inched up to 7.76 per cent.
The 8.15 per cent government security maturing in 2026, dipped to Rs 103.6325 from Rs 103.72, while its yield inched up to 7.67 per cent from 7.66 per cent.

The 8.27 per cent government security maturing in 2020, 8.83 per cent government security maturing in 2023 and the 8.12 per cent government security maturing in 2020 were also quoted lower at Rs 101.8250, Rs 106.1575 and Rs 101.15 respectively.
The overnight call money rates ended lower at 7.40 per cent from monday's close of 7.00 per cent, it moved in a range of 7.75 per cent and 7.00 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 35.07 billion in 10-bids at the 1-day repo auction at a fixed rate of 7.75 per cent today morning, while it sold securities worth Rs 133.45 billion from 35-bids at the 1-day reverse repo auction at a fixed rate of 6.75 per cent as on March 2.