Bonds recover smartly, call rate rebounds

The government bonds (G-Sec) bounced back on fresh demand from banks and corporates while call rates also recovered smartly on renewed demand from borrowing banks amid lack of liquidity in the banking system.
The 8.60 per cent government security maturing in 2028 rose to Rs 100.8075 from Rs 100.5550 previously, while its yield declined to 8.50 per cent from 8.53 per cent.
The 8.40 per cent government security maturing in 2024 also rebounded to Rs 100.2450 from Rs 100.0500, while its yield slipped to 8.36 per cent from 8.39 per cent.
The 8.83 per cent government security maturing in 2023 too firmed up to Rs 101.69 from Rs 101.5575, while its yield moved down to 8.56 per cent from 8.58 per cent.

The 8.27 per cent government security maturing in 2020, the 8.12 per cent government security maturing in 2020 and the 8.28 per cent government security maturing in 2027 also ended higher at Rs 99.2350, Rs 98.18 and Rs 97.77 respectively.
The overnight call money rates resumed remarkably higher at 8.10 per cent from previous close of 6.00 per cent and moved in a range of 9.05 per cent and 7.95 per cent before concluding strong at 8.90 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 98.12 billion in 30-bids at the one-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 105.72 billion from 33-bids at the 3-days reverse repo auction held on October 17, 2014 at a fixed rate of 7.00 per cent.