Bonds gains, call rate ends lower

The government bonds (G-Sec) gained further on consistent demand from banks and corporate, while the call rates turned lower due to lack of demand from borrowing banks amidst ample liquidity conditions in the banking system.
The 8.60 per cent government security maturing in 2028 climbed to Rs 101.8625 from Rs 101.72 previously, while its yield eased to 8.37 per cent from 8.38 per cent.
The 8.40 per cent government security maturing in 2024 rose to Rs 100.78 from Rs 100.7125, while its yield edged-down to 8.28 per cent from 8.29 per cent.
The 8.83 per cent government security maturing in 2023 also advanced to Rs 102.62 from Rs 102.4850, while its yield moved down to 8.41 per cent from 8.43 per cent.

The 8.27 per cent government security maturing in 2020, the 8.28 per cent government security maturing in 2027 and the 9.20 per cent government security maturing in 2030 also moved up to Rs 99.78, Rs 99.03 and Rs 107.27, respectively.
The overnight call money rates opened lower at 7.00 per cent from previous close of 8.15 per cent and moved in a range of 7.80 per cent and 6.75 per cent before settling lower at 7.25 per cent. The 3-day call money rate opened at 8.00 per cent and moved in a range of 8.05 per cent and 7.00 per cent before ending at 7.10 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 92.75 billion in 22-bids at the 3-days repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 81.76 billion from 25-bids at the 1-day reverse repo auction held yesterday evening at a fixed rate of 7.00 per cent.