Bonds drops, call rate ends higher

The government bond (G-Sec) dropped further on sustained selling pressure from banks and corporates.
Meanwhile the overnight call money rate finished higher due to fresh demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 fell to Rs 100.7450 from Rs 100.98, while its yield moved up to 8.71 per cent from 8.67 per cent previously.
The 8.40 per cent government security maturing in 2024 declined to Rs 99.77 from Rs 100.07, while its yield gained to 8.43 per cent from 8.39 per cent.
The 8.60 per cent government security maturing in 2028 also slipped to Rs 99.92 from Rs 100.18, while its yield climbed to 8.61 per cent from 8.58 per cent.

The 8.12 per cent government security maturing in 2020, 8.27 per cent government security maturing in 2021 and the 7.28 per cent government security maturing in 2019 were also quoted lower at Rs 97.66, Rs 99.12 and Rs 95.38, respectively.
The overnight call money rates ended higher at 8.80 per cent from last Friday's level of 8.50 per cent. It moved in range of 9.05 per cent and 8.25 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 207.13 billion in 58-bids at the 2-days repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 33.35 billion from 11-bids at the 3-days reverse repo auction at a fixed rate of 7.00 per cent last Friday.