Bonds recover on good demand, call rates down

Government bonds (G-Secs) prices recovered smartly on renewed demand from corporates as well as value buying by traders.
However, interbank call rates moved down owing to lack of demand from borrowing banks on the back of ample liquidity in the banking system.
The 8.27 per cent government security maturing in 2020 rose to Rs 101.31 from Rs 100.95 previously, while its yield edged down to 7.90 per cent from 8.00 per cent.
The 7.72 per cent government security maturing in 2025 gained to Rs 98.15 as compared to Rs 97.68, while its yield went down to 8.00 per cent from 8.08 per cent.

The 7.88 per cent government security maturing in 2030 firmed up to Rs 97.33 as against to Rs 96.86, while its yield fell to 8.20 per cent from 8.26 per cent.
The 7.59 per cent government security maturing in 2026, the 7.59 per cent government security maturing in 2029 and the 8.12 per cent government security maturing in 2020 also quoted higher at Rs 98.70, Rs 95.30 and Rs 100.63, respectively.

The overnight call money rates finished lower at 5.90 per cent from yesterday's close of 6.00 per cent. It resumed lower at 6.95 per cent and moved in a range of 7.00 per cent and 5.80 per cent.

The 4-days call money rates ended at 6.75 per cent. It moved in range of 6.95, 7.00 and 6.75 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 236.07 billion in 51-bids at one-day repo auction at a fixed rate of 6.75 per cent this evening, while it sold securities worth Rs 63.33 billion from 37-bids at the one-day reverse repo auction at a fixed rate of 5.75 per cent late yesterday.