Bonds recovers, call rates slips

The government bond (G-Sec) prices recovered on fresh buying support from banks and corporates.
While, call money rates slipped at the overnight call money market due to subdued demand from borrowing banks amidst ample liquidity in the banking system.
The 10-year benchmark bond 8.40 per cent maturing in 2024 rose to Rs 103.95 from Rs 103.90 yesterday, while its yield eased to 7.79 per cent as against 7.80 per cent.
The 8.60 per cent government security maturing in 2028 moved up to Rs 106.44 from Rs 106.42, while its yield held stable at 7.81 per cent.
The 8.15 per cent government security maturing in 2026 also gained to Rs 102.75 from Rs 102.80, while yield held steady at 7.78 per cent.

The 8.27 per cent government security maturing in 2020, the 8.83 per cent government security maturing in 2023, the 7.28 per cent government security maturing in 2019 and the 7.80 per cent government security maturing in 2020 also quoted higher at Rs 102.1025, Rs 105.97, Rs 98.4650 and 99.98, respectively.
The Interbank call rates ended lower at 6.50 per cent from Thursday's close of 7.30 per cent after hitting a intra-day high of 7.65 per cent. While the three-day call money rates opened at 7.60 per cent and moved in a range of 7.80 per cent and 6.50 per cent before settling lower at 6.60 per cent from its last Friday's level of 8.00 per cent.

Meanwhile, the Reserve Bank of India (RBI),under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 189.62 billion in 47-bids at the 3 days repo auction at a fixed rate of 7.50 per cent this morning, while it sold securities worth Rs 59.15 billion from 25-bids at the one day overnight reverse repo auction at a fixed rate of 6.50 per cent late yesterday.