Bonds rebound, call rates turn higher

Government bonds (G-Secs) prices rebounded smartly following fresh buying support from banks and corporates, and the overnight call money rates also turned higher owing to good demand from borrowing banks amid tight liquidity in the banking system.
The 7.59 per cent government security maturing in 2026 gained to Rs 103.3125 from Rs 103.16 previously, while its yield eased to 7.10 per cent from 7.12 per cent.
The 6.97 per cent government security maturing in 2026 spurts to Rs 100.3500 from Rs 100.0350, while its yield moved down to 6.92 per cent from 6.97 per cent.
The 7.59 per cent government security maturing in 2029 rose to Rs 103.69 from Rs 103.58, while its yield softened to 7.14 per cent from 7.15 per cent.

The 7.61 per cent government security maturing in 2030, the 7.88 per cent government security maturing in 2030 and the 7.68 per cent government security maturing in 2023 were also quoted higher to Rs 104.62, Rs 106.34 and Rs 103.32, respectively.
The overnight call money rates finished higher at 6.55 per cent from last Friday's level of 6.20 per cent. It resumed higher at 6.50 per cent and moved in a range of 6.60 per cent and 6.05 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 32.60 billion in a 8-bids at the overnight repo auction at a fixed rate of 6.50 per cent as on today, while it sold securities worth Rs 35.04 billion from 16-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on September 5.