Bonds gains, call rate remains lower

The government bonds (G-Sec) gained further on consistent demand from banks and corporates while, call rates remained lower due to lack of demand from borrowing banks amid ample liquidity in the banking system.
The 8.40 per cent government security maturing in 2024 rose to Rs 100.91 from Rs 100.78 previously, while its eased to 8.26 per cent from 8.28 per cent.
The 8.60 per cent government security maturing in 2028 climbed to Rs 102.0425 from Rs 101.8625, while its yield moved down to 8.34 per cent from 8.37 per cent.
The 8.83 per cent government security maturing in 2023 also advanced up to Rs 102.90 from Rs 102.62, while its yield fell to 8.37 per cent from 8.41 per cent.

The 8.28 per cent government security maturing in 2027, the 8.27 per cent government security maturing in 2020 and the 8.35 per cent government security maturing in 2022 also ended higher at Rs 99.23, Rs 99.83 and Rs 99.9025, respectively.
The overnight call money rates resumed higher at 7.90 per cent from previous close of 7.25 per cent and moved in a range of 8.15 per cent and 7.10 per cent before closing lower at 7.10 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 17.22 billion in 5-bids at the two-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 66.37 billion from 368-bids at the 3-days reverse repo auction held on October 31, 2014 at a fixed rate of 7.00 per cent.