Bonds remain bearish; call rate ends lower

The government bonds (G-Sec) remained bearish on persistent selling pressure from banks and corporates and the call rate ended lower at the overnight call money market due to subdued demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 declined to Rs 100.62 from Rs 100.7450 previously, while its yield gained to 8.73 per cent from 8.71 per cent.
The 8.40 per cent government security maturing in 2024 fell to Rs 99.24 from Rs 99.77, while its yield climbed to 8.51 per cent from 8.43 per cent.
The 8.60 per cent government security maturing in 2028 also dipped to Rs 99.55 from Rs 99.92, while its yield moved up to 8.65 per cent from 8.61 per cent.

The 8.12 per cent government security maturing in 2020, 8.27 per cent government security maturing in 2020 and the 8.35 per cent government security maturing in 2022 were also quoted lower at Rs 97.55, Rs 98.85 and Rs 95.40, respectively.
The overnight call money rates finish lower at 7.00 per cent from Monday's level of 8.80 per cent. It moved in a wide range of 8.55 per cent and 6.90 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 207.92 billion in 56-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 48.11 billion from 9-bids at the 2-days reverse repo auction at a fixed rate of 7.00 per cent last evening.