Bonds drop, call rates remain lower

Government bonds (G-Secs) dropped on sustained selling pressure from banks and corporates and the overnight call money rates also remained lower owing to subdued demand from borrowing banks amid ample liquidity in the banking system.
The 7.88 per cent government security maturing in 2030 fell to Rs 98.79 from Rs 99.19 previously, while its yield rose to 8.02 per cent from 7.97 per cent.
The 8.27 per cent government security maturing in 2020 declined to Rs 102.2975 from Rs 102.48, while its yield climbed to 7.63 per cent from 7.59 per cent.
The 7.59 per cent government security maturing in 2029 dipped to Rs 97.1450 from Rs 97.5925, while its yield gained to 7.94 per cent from 7.89 per cent.

The 7.59 per cent government security maturing in 2026, the 7.72 per cent government security maturing in 2025 and the 7.68 per cent government security maturing in 2023 also quoted lower by Rs 99.09 and Rs 99.14 and Rs 99.33, respectively.
The overnight call money rates remained lower at 6.15 per cent from Monday's closing level of 6.50 per cent. It resumed higher at 6.95 per cent and moved in a range of 7.10 per cent and 6.00 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 75.09 billion in a 17-bids at the overnight repo auction at a fixed rate of 6.75 per cent as on today, while it sold securities worth Rs 41.04 billion from 31-bids at the one-day reverse repo auction at a fixed rate of 5.75 per cent as on Feb 1 evening.