Bonds recover, call rates slip

Government bonds (G-Secs) recovered on fresh buying support from banks and corporates.
The overnight call money rate slipped at the money market due to lack of demand from borrowing banks amid ample liquidity in the banking system.
The 8.40 per cent government security maturing in 2024 rose to Rs 104.2025 from Rs 103.90 previously, while its yield moved down to 7.77 per cent from 7.81 per cent.
The 8.60 per cent government security maturing in 2028 climbed to Rs 106.22 from Rs 105.90, while its yield eased to 7.84 per cent from 7.88 per cent.
The 8.27 per cent government security maturing in 2020 also shot-up to Rs 101.6150 from Rs 101.39 while its yield went down to 7.89 per cent from 7.95 per cent.

The 8.15 per cent government security maturing in 2026, the 8.83 per cent government security maturing in 2026 and the 8.28 per cent government security maturing in 2027 were also quoted higher at Rs 102.92, Rs 105.6350 and Rs 102.58, respectively.

The overnight call money rates ended lower at 8.05 per cent from yesterday's closing level of 8.25 per cent. It resumed slightly lower at 8.20 and moved in a range of 8.65 per
cent and 8.00 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 206.38 billion in 55-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today, while it sold Securities worth Rs 13.98 billion from 9-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent as on Jan 12.