Bonds recover slightly, call money rate tumbles

The government securities recovered slightly on stray demand from banks and corporates while call money rate tumbled on lack of demand from banks amid surplus of cash in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 edged up to Rs 100.3075 from Rs 100.2925, while its yield held stable at 8.78 per cent.
The 8.28 per cent government security maturing in 2027 also rose to Rs 94.01 from Rs 93.9325, while its yield eased to 9.06 pct from 9.07 per cent.
The 7.28 per cent government security maturing in 2019 firmed up to Rs 94.10 from Rs 93.98, while its yield declined to 8.75 pct from 8.78 per cent.

The 8.12 per cent government security maturing in 2020, the 8.35 per cent government security maturing in 2022 and the 8.24 per cent government security maturing in 2027 were also inched up to Rs 96.10, Rs 96.93 and Rs 93.84 respectively.
The overnight call money rate resumed slightly lower at 8.45 per cent from last Tuesday's close of 9.00 per cent and immediately touched a high of 8.60.
Later, it met with strong resistance and plunged to a low of 6.50 pct before settling sharply down at 7.05 pct.
Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 208.91 billion in 52-bids at the one-day repo auction at a fixed rate of 8.00 per cent today morning.