Bonds rebound, call rates turn lower

Government bonds (G-Secs) staged a smart recovery following fresh demand from corporates and banks. However, the interbank call rates turned lower due to lack of demand from borrowing banks amid comfortable liquidity situation in the banking system.
The 7.59 per cent government security maturing in 2029 spurted to Rs 101.22 as compared to Rs 100.9975 previously, while its yield down to 7.44 per cent from 7.47 per cent.
The 7.88 per cent government security maturing in 2030 went up to Rs 103.6950 from Rs 103.4050, while its yield moved down to 7.44 per cent from 7.48 per cent.
The 7.59 per cent government security maturing in 2026 climbed to Rs 102.09 from Rs 101.9950 while, its yield edged down to 7.28 per cent from 7.29 per cent.

The 7.61 per cent government security maturing in 2030, the 7.68 per cent government security maturing in 2023 and the 7.72 per cent government security maturing in 2025 were also quoted higher at Rs 101.93, Rs 102.3075 and Rs 102.23, respectively.
The overnight call money rates finished lower at 6.40 per cent from Monday's close 6.65 per cent. Its moved in a range of 6.65 per cent and 6.00 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 91.25 billion in 23-bids at the overnight repo auction at a fixed rate of 6.50 per cent as on today, while it sold securities worth Rs 25.17 billion from 18-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on July 18.