Bonds recover, call rates also end higher

The government bond (G-Sec) prices recovered following fresh buying by banks and corporates, while the overnight call money rate ended higher owing to good demand from borrowing banks amid tight liquidity conditions in the banking system.
The 7.72 per cent government security maturing in 2025 rose to Rs 99.40 from Rs 99.2950 previously, while its yield edged-down to 7.81 per cent from 7.82 per cent.
The 8.40 per cent government security maturing in 2024 climbed to Rs 102.6825 from Rs 102.6550, while its yield held stable to 7.98 per cent.
The 7.68 per cent government security maturing in 2023 gained to Rs 98.39 from Rs 98.29, while its yield moved down to 7.94 per cent from 7.96 per cent.

The 7.88 per cent government security maturing in 2030, the 8.27 per cent government security maturing in 2020 and the 7.35 per cent government security maturing in 2024 were also quoted higher to Rs 99.22, Rs 101.3075 and Rs 96.13, respectively.
The overnight call money rates finished higher at 6.80 per cent from 6.70 per cent from Thursday's closing level. It moved in a range of 7.10 per cent and 6.80 per cent.
Meanwhile, the three-days call money rate ended also higher at 7.10 per cent from last Friday's closing level of 6.00 per cent. It moved in a range of 7.30 per cent and 6.70 per cent.

Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 22.24 billion in 6-bids at the 3-days repo auction at a fixed rate of 7.25 per cent this morning, while its sold securities worth Rs 58.20 billion from 22-bids at the overnight reverse repo auction at a fixed rate of 6.25 per cent July 30.