Bonds firm up after demand traction, but call rates slide

Government bonds (G-Secs) surged following consistent demand from corporates and banks, but inter-bank call rates turned lower due to lack of demand from borrowing banks amid comfortable liquidity situation.
The 7.59 per cent government security maturing in 2026 rose to Rs 103.05 compared with Rs 102.89 previously while its yield went down to 7.14 per cent, from 7.16 per cent.
The 7.59 per cent government security maturing in 2029 gained to Rs 102.94 from Rs 102.68 while its yield edged down to 7.23 per cent, from 7.26 per cent.
The 7.88 per cent government security maturing in 2030 inched up to Rs 105.62, from Rs 105.29. Its yield softened to 7.22 per cent, from 7.26 per cent.

The 7.61 percent paper maturing in 2030, the 7.68 per cent one maturing in 2023 and the 7.72 per cent G-sec maturing in 2025 also quoted higher at Rs 103.73, Rs 103.08 and Rs 103.35, respectively.
The overnight call money rates ended lower at 6.50 per cent, from Friday's level of 6.90 per cent. It moved in a range of 6.55 per cent and 6 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 34.89 billion in 7-bids at the overnight repo auction at a fixed rate of 6.50 per cent as on today. It sold securities worth Rs 65.65 billion from 26-bids at the 2-day reverse repo auction at a fixed rate of 6 per cent as on July 30.