Bonds fall on fresh selling, call rates strengthen

Government bonds (G-Secs) prices retreated after a brief recovery following renewed selling pressure from banks and corporates amid profit taking by market participants.
While, interbank rates continued to rule firm for the third straight day at the overnight call money market due to good demand from borrowing banks amidst tight liquidity conditions in the banking system.
The 7.59 per cent government security maturing in 2026 declined to Rs 99.07 from Rs 99.70 previously, while its yield gained to 7.72 per cent as against 7.71 per cent.
The 7.88 per cent government security maturing in 2030 moved down to Rs 99.0150 from Rs 99.1375, its yield inched up to 8.00 per cent from 7.98 per cent.

The 7.72 per cent government security maturing in 2025 dropped to Rs 99.23 compared to Rs 99.32, while its yield advanced to 7.84 per cent from 7.82 per cent.
The 7.68 per cent government security maturing in 2023, the 8.27 per cent government security maturing in 2020 and the 6.35 per cent government security maturing in 2020 were also quoted substantially lower at Rs 99.3175, Rs 102.35 and Rs 95.8350, respectively.
The overnight call money rates opened firmly higher at 6.95 per cent as against Friday's level of 6.75 and gained further to an intra-day 7.65 per cent before ending at 7.25 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 252.63 billion in 61-bids at one-day repo auction at a fixed rate of 6.75 per cent this evening.