Bonds recover on good demand, firm rupee; call rates drop

The government bond (G-Sec) prices staged a smart rebound on the back of robust demand from corporates and market participants supported by firm rupee sentiment.
Meanwhile, call rates dropped sharply due to lack of demand from borrowing banks.
The 10-year benchmark bond 8.40 per cent maturing in 2024 spurted to Rs 102.7350 from Rs 102.5425 yesterday, while its yield softened to 7.97 per cent against 7.99 per cent.
The 8.27 per cent government security maturing in 2020 moved up to Rs 101.17 compared to Rs 101.0150, while its yield slipped to 7.98 per cent from 8.01 per cent.
The 8.60 per cent government security maturing in 2028 firmed up to Rs 104.31 from Rs 104.07, while its yield inched down to 8.06 per cent from 8.07 per cent.

The 8.15 per cent government security maturing in 2026 edged up to Rs 100.72 against Rs 100.5550, while its yield fell to 8.05 per cent from 8.07 per cent.

The 7.72 per cent government security maturing in 2025, the 7.88 per cent government security maturing in 2030 and the 7.68 per cent government security maturing in 2023 were also quoted substantially higher at Rs 99.52, Rs 99.01 and Rs 98.22, respectively.
The overnight call money rates ended lower at 7 per cent from Monday's closing level of 8.15 per cent after fluctuating between 7.50 per cent and 6.25 per cent in early trade.

Meanwhile, the Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 135.11 billion in 39-bids at the one-day repo auction at a fixed rate of 7.25 per cent this morning, while it sold securities worth Rs 27.63 billion from 15-bids at the one-day reverse repo auction at a fixed rate of 6.25 per cent late yesterday.