Bonds harden, call rates turn higher

Government bonds (G-Secs) hardened today following heavy demand from corporates and banks, and the overnight call money rates also turned higher due to good demand from borrowing banks amid tight liquidity conditions in the banking system.
The 7.59 per cent 10-year benchmark bond maturing in 2026 surged to Rs 105.37 from Rs 105.0900, while its yield fell to 6.80 per cent from 6.84 per cent.
The 7.59 per cent government security maturing in 2029 climbed to Rs 105.62 from Rs 105.1925, while its yield edged down to 6.91 per cent from 6.96 per cent.
The 7.61 per cent government security maturing in 2030 rose to Rs 106.3975 from Rs 106.00, while its yield eased to 6.88 per cent from 6.92 per cent.

The 7.88 per cent government security maturing in 2030, the 7.68 per cent government security maturing in 2023 and the 6.97 per cent government security maturing in 2026 also quoted higher to Rs 107.98, Rs 105.14 and Rs 102.11 respectively.
The overnight call money rates ended higher at 6.25 per cent from Tuesday's level 6.00 per cent. It resumed higher at 6.30 per cent and moving in a range of 6.40 per cent and 6.00 per cent.
Meanwhile, Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 31.94 billion in 8-bids at the overnight repo auction at a fixed rate of 6.25 per cent today morning, while it sold securities worth Rs 37.87 billion in 25-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on October 4.