Bonds gains, call rates turn lower

Government bonds (G-Secs) gains further following fresh demand from corporates and banks, while, the overnight call money rates turned lower due to lack of demand from borrowing banks amid comfortable liquidity in the banking sytem.

The 7.17 per cent government security maturing in 2028 rose to Rs 99.13 from Rs 98.87, while, its yield moved down to 7.29 per cent from 7.33 per cent.

The 6.68 per cent government security maturing in 2031 gained to Rs 93.21 from Rs 92.83, while, its yield edged down to 7.49 per cent from 7.54 per cent.

The 6.79 per cent government security maturing in 2027 climbed to Rs 95.70 from Rs 95.43, while, its yield eased to 7.45 per cent from 7.49 per cent.

The 7.80 per cent government security maturing in 2020, the 7.80 per cent government security maturing in 2021 and the 7.16 per cent government security maturing in 2023 were also quoted higher to Rs 101.92, Rs 102.11 and Rs 99.45 respectively.

The overnight call money rates finished lower at 5.80 per cent from Tuesday's closing level of 5.85 per cent. It opened at 6.00 per cent and moved in a range of 6.00 per cent and 5.60 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 36.10 billion in 5-bids at the overnight repo opertion at a fixed rate of 6.00 per cent as on today, while its sold securities worth Rs 568.40 billion in 74-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on April 03.