Bonds remain bearish on continued selling; call rates recover

The Government bond (G-Sec) prices dropped further owing to sustained selling from banks as well as profit-taking by market participants.
While, call rates recovered at the overnight call money market on the back of renewed demand from borrowing banks and corporates amidst tight liquidity situation in the banking system.
The 8.40 per cent government security maturing in 2024 slipped to Rs 103.93 from Rs 104.10 yesterday, while its yield jumped to 7.80 per cent from 7.77 per cent.
The 8.60 per cent government security maturing in 2028 slumped to Rs 106.52 against Rs 106.66, while yield rose to 7.80 per cent from 7.78 per cent.

The 8.27 per cent government security maturing in 2020 moved down to Rs 101.86 compared to Rs 101.97, while yield firmed up to 7.82 per cent from 7.80 per cent.
The 8.15 per cent government security maturing in 2026 also fell to Rs 102.94 from Rs 103.0650, while yield rose to 7.76 per cent from 7.74 per cent.

The 8.83 per cent government security maturing in 2023 the 8.12 per cent government security maturing in 2020 and the 8.28 per cent government security maturing in 2027 also quoted lower at Rs 105.96, Rs 101.15 and Rs 103.10, respectively.
The overnight call money rates finished higher at 7.30 from Wednesday's closing level of 6.90 per cent after hovering between a range of 7.55 per cent and 6.50 per cent earlier.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 50.87 billion in 13-bids at the 1-day repo auction at a fixed rate of 7.50 per cent this morning, while it sold securities worth Rs 101.40 billion from 30-bids at the 1-day reverse repo auction at a fixed rate of 6.50 per cent late yesterday.