Bonds recover on fresh demand, call rates end higher

The government bond (G-Sec) prices recovered smartly on the back of fresh demand from corporates and market participants.
Call money rates also rebounded owing to renewed demand from borrowing banks driven by ample liquidity conditions in the banking system.
The 7.72 per cent government security maturing in 2025 rose to Rs 99.52 from Rs 99.38 previously, while its yield moved down to 7.79 pct from 7.81 per cent.
The 8.40 per cent government security maturing in 2024 climbed to Rs 102.79 from Rs 102.67, while its yield edged- down to 7.96 per cent from 7.98 per cent.
The 7.88 per cent government security maturing in 2030 advanced to Rs 99.3175 as against Rs 99.18, while its yield went down to 7.96 per cent from 7.98 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 at Rs 98.4875, Rs 101.3075 and Rs 96.15, respectively.

However, 8.27 per cent government security maturing in 2020 and 7.16 per cent maturing in 2023 eased marginally to Rs 101.13 and Rs 94.78.
The overnight call money rates moved up to 7.20 per cent from last Friday's of 6.80 per cent after trading in a range of 7.55 per cent and 6.70 per cent in early trade.
Meanwhile, the Reserve Bank, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 19.56 billion in 8-bids at the one-day overnight repo auction at a fixed rate of 7.25 per cent this morning.