Bonds firm up on steady demand, call rates end higher

Government bond (G-Secs) prices firmed up further due to good buying support from banks and corporates, and the interbank call money rates ended higher due to persistent demand from borrowing banks amid ample liquidity in the banking system.
The benchmark 7.59 per cent government security maturing in 2026 regained to Rs 104.4150 from Rs 104.20 previously, while its yield fell to 6.94 per cent from 6.97 per cent.
The 7.59 per cent government security maturing in 2029 surged to Rs 104.8275 as against Rs 104.42 previously, while its yield drifted to 7.00 per cent from 7.05 per cent.
The 7.61 per cent government security maturing in 2030 advanced to Rs 105.62 compared to Rs 105.23, while its yield slid to 6.96 per cent from 7.00 per cent.

The 7.88 per cent government security maturing in 2030, the 6.97 per cent government security maturing in 2026 and the 7.68 per cent government security maturing in 2023 were also quoted higher at Rs 107.2175, Rs 101.30 and Rs 104.3625 respectively.
The overnight borrowing rate finished higher at 6.54 per cent from last Friday's closing of 6.48 per cent after moving in a range of 6.55 per cent and 6.40 per cent in early trade.
Meanwhile, Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 27.48 billion in 5-bids at overnight repo auction at a fixed rate of 6.50 per cent this evening.

Its sold securities worth Rs 30.34 billion from 25-bids at the 3-days reverse repo auction at a fixed rate of 6.00 per cent as on September 23.