Bonds rebound on good demand; call rates claw back

Government bonds (G-Secs) prices rebounded smartly after a brief overnight fall on the back of good demand from corporates and market participants supported by firm rupee sentiment.
The interbank call money rate also recovered owing to renewed demand from borrowing banks and tight liquidity conditions in the banking system.
The 7.59 per cent government security maturing in 2026 rose to Rs 99.09 as compared to Rs 98.9750 yesterday, while its yield held steady at 7.72 per cent.
The 7.88 per cent government security maturing in 2030 firmed up to to Rs 99.06 from Rs 98.99, while its yield inched down to 7.99 per cent from 8.00 per cent.

The 7.72 per cent government security maturing in 2025 moved up to Rs 99.3625 as against Rs 99.2050, while its yield fell to 7.82 per cent from 7.84 per cent.
The 8.27 per cent government security maturing in 2020, the 7.68 per cent government security maturing in 2023 and the 7.59 per cent government security maturing in 2029 were also quoted firmly higher at Rs 102.32, Rs 99.3250 and Rs 97.07, respectively.
The overnight call money rates ended higher at 6.80 per cent from Tuesday's closing level of 6.25 per cent. It opened firm at 7.00 per cent and moved between 7.15 per cent and 6.50 per cent during the trade.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 218.81 billion in 51-bids at one-day repo auction at a fixed rate of 6.75 per cent this evening, while it sold securities worth Rs 31.23 billion from 32-bids at the reverse repo auction at a fixed rate of 5.75 per cent late yesterday.