Bonds rally on strong demand, call rates rebound

The government bonds rallied on the back of renewed buying support from banks and corporates.
The overnight call money rates also rebounded sharply after two-day slide due to fresh demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 rose to 100.38 from Rs 100.14 from Monday, while its yield declined to 8.77 per cent from 8.80 per cent.
The 8.12 per cent government security maturing in 2020 spurted to Rs 94.86 from Rs 94.73, while yield fell to 9.15 per cent from 9.17 per cent.
The 8.28 per cent government security maturing in 2027 jumped to Rs 92.61 from Rs 92.42, while yield slipped to 9.24 per cent from 9.27 per cent.

The 7.28 per cent government security maturing in 2019 also spiked to Rs 93.1425 from Rs 93.06, while yield moved down to 8.93 per cent from 8.95 per cent.

The 8.32 per cent government security maturing in 2032, the 7.16 per cent government security maturing in 2023 and the 9.20 per cent government security maturing in 2030 were also finished substantially higher at Rs 91.93, Rs 87.53 and Rs 99.83, respectively.
The overnight call money ended higher at 9.00 percent from yesterday's level of 7.05 per cent after touching a low of 7.85 per cent earlier.
The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 337.04 billion in 50-bids at the 2-day repo auction at a fixed rate of 8.00 per cent on today morning, while sold securities worth Rs 28.42 billion from 12-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.