Bonds remain bearish on intense selling; call rates end weak

The government bond (G-Sec) prices continued to witness selling from corporates and market participants as well as lacklustre demand.
The interbank call money rate also softened following lack of demand from borrowing banks amid adequate liquidity in the banking system.
The 10-year benchmark bond 8.40 per cent maturing in 2024 dropped to Rs 102.3850 from Rs 102.69 yesterday, while its yield firmed up to 8.02 per cent against 7.98 per cent.
The 7.72 per cent government security maturing in 2025 drifted to Rs 99.29 from Rs 99.42, while its yield gained to 7.82 per cent from 7.80 per cent.
The 8.27 per cent government security maturing in 2020 declined to Rs 100.87 from Rs 101.09, while its yield moved up to 8.05 per cent from 7.99 per cent.

The 8.60 per cent government security maturing in 2028 slumped to Rs 103.88 from Rs 104.13, while yield inched up to 8.08 per cent from 8.11 per cent.

The 8.15 per cent government security maturing in 2026, the 7.68 per cent government security maturing in 2023 and the 8.83 per cent government security maturing in 2023 were also ended substantially lower at Rs 100.31, Rs 97.7650 and Rs 104.20, respectively.
The overnight call rates retreated to finish a tad weak at 6.85 per cent compared to Wednesday's close of 6.90 per cent after trading in a tight range of 7.35 per cent and 6.75 per cent in early trade.

Meanwhile, the Reserve Bank of India under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 114.05 billion in 32-bids at the one-day repo auction at a fixed rate of 7.25 per cent this morning, while it sold securities worth Rs 28.06 billion from 21-bids at the one-day reverse repo auction at a fixed rate of 6.25 per cent yesterday evening.