Bonds maintain buoyancy on liquidity strength, call rates down

Government bond (G-Secs) prices continued to surge for the third-straight day on the back of robust demand from corporates and banks amid easy liquidity measures from RBI.
However, the inter-bank call money rates remained under pressure owing to subdued demand from borrowing banks in the face of adequate liquidity conditions in the banking system.
The benchmark 7.59 per cent government security maturing in 2026 firmed up to Rs 103.43 from Rs 103.3125 yesterday, while its yield dropped to 7.08 per cent from 7.10 per cent.
The 7.59 per cent government security maturing in 2029 rose to Rs 103.7350 as compared to Rs 103.52 previously, while its yield slipped to 7.13 per cent from 7.16 per cent.

The 7.88 per cent government security maturing in 2030 edged up to Rs 106.50 from Rs 106.25, while its yield declined to 7.12 per cent from 7.15 per cent.
The 7.61 per cent government security maturing in 2030 moved higher to Rs 104.57 from Rs 104.33, while its yield fell to 7.08 per cent from 7.11 per cent.

The 7.68 per cent government security maturing in 2023, the 7.72 per cent government security maturing in 2025 and 8.27 per cent government security maturing in 2020 were also quoted higher at Rs 103.3750, Rs 103.7750 and Rs 104.3250, respectively.
The overnight borrowing rate ended marginally weak at 6.20 per cent from Wednesday's closing value of 6.30 per cent. It largely moved in a range of 6.65 per cent and 6.10 per cent during the day.

Meanwhile, Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 39.74 billion in 10-bids at one-day overnight repo auction at a fixed rate of 6.50 per cent this evening.
It sold securities worth Rs 27.68 billion from 22-bids at the reverse repo auction at a fixed rate of 6.00 per cent late yesterday.