Bonds ends mixed; call rates slips

Government bonds (G-Secs) prices ended mixed after a day of heavy trading due to alternate bouts of buying and selling even as rate cut hopes continued to dominate sentiment.
The interbank money market turned weak after a lack of demand from borrowing banks in the face of ample liquidity conditions in the banking system.
The 7.59 per cent government security maturing in 2029 decline to Rs 99.09 from overnight level of Rs 99.31, while its yield moved up to 7.70 from 7.67 per cent.
The 7.59 per cent government security maturing in 2026 inched down to Rs 100.57 from Rs 100.5725, while its yield remained stable to 7.50 per cent.

The 7.88 per cent government security maturing in 2030 moved down to Rs 100.1575 as compared to Rs 100.29, while yield eased to 7.86 per cent from 7.85 per cent.
The 7.72 per cent government security maturing in 2025 was quoted lower at Rs. 100.0775 as compared to Rs. 100.1575, while its yield inched up to 7.71 per cent from 7.69 per cent.

However, 8.27 per cent government security maturing in 2020, the 7.68 per cent government security maturing in 2023 and the 8.40 per cent government security maturing in 2024 were quoted substantially higher at Rs 102.40, Rs 99.67 and Rs 103.45, respectively.

The overnight call money rates ended sharply lower at 5.90 per cent against Monday's closing value of 6.60 per cent. It hovered in a range of 7.50 per cent and 5.80 per cent during the trade.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 213.16 billion in 50-bids at the overnight repo opertions at a fixed rate of 6.75 per cent this evening.
It sold securities worth Rs 84.75 billion from 36-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent late yesterday.