Bonds recover, call rates decline

The government bond (G-Sec) recovered smartly on fresh buying support from banks and corporates.
Meanwhile, the overnight call money rate declined due to lack of demand from borrowing banks.
The 8.60 per cent 10-year benchmark bond maturing in 2028 shot-up to Rs 100.1500 from Rs 99.7800, while its yield slipped to 8.58 per cent from 8.63 previously.
The 8.40 per cent government security maturing in 2024 recouped to Rs 99.7050 from Rs 99.4125, while its yield declined to 8.44 per cent from 8.49 per cent.
The 8.83 per cent government security maturing in 2023 also rebounded to Rs 101.0800 as against Rs 100.8225, while its yield fell to 8.65 per cent from 8.69 per cent.

The 8.27 per cent government security maturing in 2020, the 7.28 per cent government security maturing in 2019 and the 8.28 per cent government security maturing in 2027 also climbed to Rs 98.7600, Rs 95.4075 and Rs 96.8000, respectively.
The overnight call money rates ended lower at 7.05 per cent from 7.95 per cent yesterday. It moved in range of 8.05 per cent and 7.05 per cent and the 3-days call money rates also moved down at 7.10 per cent from last Friday's closing level at 7.75 per cent. It moved in range of 8.05 per cent and 7.05 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 52.72 billion in 17-bids at the 3-days repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 71.03 billion from 19-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.