Bonds recover, call rates remain higher

Government bonds (G-Secs) recovered on fresh buying support from banks and corporates while the overnight call money rate remained higher at the money market due to sustained demand from borrowing banks amidst tight liquidity in the banking system.
The 8.40 per cent government security maturing in 2024 rose to Rs 102.9525 from Rs 102.83 previously, while its yield move-down to 7.94 per cent from 7.96 per cent.
The 8.60 per cent government security maturing in 2028 gained to Rs 104.98 from Rs 104.8650, while its yield edged-down to 7.98 per cent from 7.99 per cent.
The 8.15 per cent government security maturing in 2026 also climbed to Rs 101.17 from Rs 101.12, while its yield inched down to 7.99 per cent from 8.00 per cent.

The 8.27 per cent government security maturing in 2020, the 8.83 per cent government security maturing in 2023 and 7.88 per cent government security maturing in 2030 were also quoted higher to Rs 101.2650, Rs 104.8125 and Rs 99.84, respectively.
The overnight call money rates ended higher at 7.50 per cent from previous closing level of 7.00 per cent. It moved in a range of 7.75 per cent and 6.50 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 167.12 billion in a 40-bids at the 1-day repo auction at a fixed rate of 7.50 per cent as on today, while it sold securities worth Rs 36.60 billion from 33-bid at the overnight reverse repo auction at a fixed rate of 6.50 per cent as on May 13.