Bonds drop on subdued demand; call rates end lower

Government bonds (G-Secs) prices dropped further on persistent selling by corporates and banks.
The Interbank call money market ended lower owing to lower demand from borrowing banks amidst ample liquidity conditions in the banking system.
The 7.59 per cent government security maturing in 2026 fell to Rs 98.6850 from Rs 98.87 previously, while its yield rose to 7.78 per from 7.75 per cent.
The 7.88 per cent government security maturing in 2030 dipped to Rs 98.43 as compared to Rs 98.73, while its yield moved up to 8.07 per cent from 8.03 per cent.
The 7.72 per cent government security maturing in 2025 also dipped to Rs 98.64 as against Rs 99.00, while its yield advanced to 7.92 from 7.87 per cent.

The 8.27 per cent government security maturing in 2020 the 7.68 per cent government security maturing in 2023 and the 7.59 per cent government security maturing in 2029 were also quoted lower at Rs 102.00, Rs 98.6750 and Rs 96.50, respectively.
The overnight call money rates ended lower at 6.45 per cent from Monday's level of 6.80 per cent after touching a intra-day high of 7.05 percent. It opened higher 7.00 percent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 88.92 billion in 21-bids at one-day repo auction at a fixed rate of 6.75 per cent this evening, while it sold securities worth Rs 39.09 billion from 29-bids at the reverse repo auction at a fixed rate of 5.75 per cent as on Feb 15.