Bonds gains, call rate recovers

The government bond (G-Sec) gained further on persistent buying support from banks and corporate and the overnight call rates recovered due to fresh demand from borrowing banks.
The 8.40 per cent government security maturing in 2024 rose to Rs 100.00 from Rs 99.8575 previously, while its yield moved down to 8.40 per cent from 8.42 per cent.
The 8.60 per cent government security maturing in 2028 climbed to Rs 100.47 from Rs 100.3950, while its yield edged- down to 8.54 per cent from 8.55 per cent.
The 8.83 per cent government security maturing in 2023 also advanced to Rs 101.49 from Rs 101.42, while its yield eased to 8.59 per cent from 8.60 per cent.

The 8.27 per cent government security maturing in 2020, the 8.28 per cent government security maturing in 2027, the 8.12 per cent government security maturing in 2020 and the 8.35 per cent government security maturing in 2022 where also quoted higher at Rs 99.0150, Rs 97.30, Rs 97.89 and Rs 98.58, respectively.
The overnight call money rates ended higher at 9.00 per cent from 7.80 per cent yesterday. It moved in a range of 9.05 per cent and 7.85 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 107.62 billion in 26-bids at the 2-days repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 24.28 billion from 21-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent, last Friday.