Bonds extends gain, call rates ends lower

Government bonds (G-Secs) extended its gains on consistent buying support from banks and corporates. While, the overnight call money rate ended lower at the money market due to lack of demand from borrowing banks amid ample liquidity in the banking system.
The 8.40 per cent government security maturing in 2024 moved up to Rs 103.50 from Rs 103.48 previously, while its yield held stable at 7.86 per cent.
The 8.15 per cent government security maturing in 2026 edged-up to Rs 102.0050 from Rs 102.00, while its yield held steady at 7.88 per cent.
The 8.60 per cent government security maturing in 2028 also rose to Rs 105.75 from Rs 105.7375, while its yield held steady at 7.89 per cent.

The 8.27 per cent government security maturing in 2020, 8.83 per cent government security maturing in 2023 and 7.88 per cent government security maturing in 2030 were also quoted higher to Rs 101.72, Rs 105.37 and Rs 100.60, respectively.
The overnight call money rates ended lower at 6.70 per cent from yesterday's level of 7.80 per cent. It moved in a range of 8.10 per cent and 7.15 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 187.09 billion in a 47-bids at the 1-day repo auction at a fixed rate of 7.50 per cent as on today, while it sold securities worth Rs 57.35 billion from 23-bids at the 1-day Overnight Reverse Repo auction at a fixed rate of 6.50 per cent as on May 19.