Bonds extend fall, call rates recover

Government bonds prices continued their slide for the third day on consistent unwinding from banks and corporates amid speculation that interest rates could stay higher ahead of the RBI monetary policy review next week.
Meanwhile, overnight call money rates rebounded sharply on the back of fresh demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 dropped to Rs 101.0550 from Rs 101.43 yesterday, while its yield rose to 8.67 per cent from 8.61 per cent.
The 8.28 per cent government security maturing in 2027 slipped to Rs 94.4850 from Rs 94.84, while yield firmed up to 8.99 per cent from 8.94 per cent.

The 8.12 per cent government security maturing in 2020 also declined to Rs 96.40 from Rs 96.76, while yield shot-up to 8.83 per cent from 8.75 per cent.
The 7.28 per cent government security maturing in 2019, the 8.24 per cent government security maturing in 2027 and the 9.20 per cent government security maturing in 2030 were also quoted lower at Rs 94.05, Rs 94.30 and Rs 101.75, respectively.
The overnight call money rate finished higher at 8.10 per cent from 6.85 per cent on Wednesday. It moved in a wide range of 8.30 per cent and 7.50 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth 249.84 billion in 35-bids at the one-day repo auction at a fixed rate of 7.75 per cent.