Bonds recover on good demand, call rates finish lower

Government bonds (G-Secs) prices recovered smartly on renewed demand from banks and corporates, while the overnight call money rates moved down owing to lack of demand from borrowing banks on the back of ample liquidity in the banking system.
The 7.59 per cent government security maturing in 2029 climbed to Rs 97.3250 from Rs 96.5750 previously, while its yield moved down to 7.92 from 8.02 per cent.
The 7.59 per cent government security maturing in 2026 gained to Rs 99.69 from Rs 99.5175, while its yield edged down to 7.63 per cent from 7.66 per cent.
The 7.88 per cent government security maturing in 2030 rose to Rs 98.8600 from Rs 98.60, while its yield went down to 8.02 per cent to 8.05 per cent.

The 8.27 per cent government security maturing in 2020, the 7.72 per cent government security maturing in 2025 and the 7.28 per cent government security maturing in 2019 were also quoted higher to Rs 102.18, Rs 99.44 and Rs 99.15 respectively.
The overnight call money rates finished lower at 6.00 per cent from Thursday's closing level of Rs 6.70 per cent. It resumed lower at 6.50 per cent and moved in a range of 6.50 and 6.00 per cent.

The 4-days call money rates quoted 6.70 per cent. It resumed 6.85 per cent and moved in a range of 6.90 per cent and 6.20 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 79.97 billion in 23-bids at the overnight repo auction at a fixed rate of 6.75 per cent as on today.
It sold securities worth Rs 19.68 billion from 28-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on March 3.