Bonds recover, call rates finish lower

Government bonds (G-Secs) recovered on fresh buying support from banks and corporates. While, the overnight call money rates finished lower owing to subdued demand from borrowing banks amid tight liquidity in the banking system.
The 7.72 per cent government security maturing in 2025 rose to Rs 99.7725 from Rs 99.5450 previously, while its yield was moved down from 7.75 to 7.78 per cent.
The 7.88 per cent government security maturing in 2030 climbed to Rs 99.9525 from Rs 99.6375, while its yield eased to 7.89 per cent from 7.92 per cent.
The 8.40 per cent government security maturing in 2024 advanced to Rs 103.06 from Rs 102.8450, while its yield declined to 7.91 per cent from 7.96 per cent.

The 7.68 per cent government security maturing in 2023, 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 98.7450, Rs 101.48 and Rs 96.55, respectively.
The overnight call money rates finished lower at 6.85 per cent from yesterday's closing level of 7.25 per cent. It resumed lower at 7.20 and moved in wide range of 7.30 per cent and 6.75 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 66.87 billion in a 11-bids at the overnight repo auction at a fixed rate of 7.25 per cent as on today, while it sold securities worth Rs 65.58 billion from 25-bids at the one-day reverse repo auction at a fixed rate of 6.25 per cent as on Aug 31.