Bonds retreat, call rate down

The government bond (G-Sec) prices dropped on fresh selling pressure from banks and corporates and the overnight call money rate also finished lower due to lack of demand from borrowing banks amid ample liquidity in the banking system.
The 8.40 per cent 10-year benchmark bond maturing in 2024 fell to Rs 104.5650 from Rs 104.7075, while its yield edged-up to 7.71 per cent from 7.69 previously.
The 8.60 per cent government security maturing in 2028 dipped to Rs 107.21 from Rs 107.41, while its yield moved-up to 7.72 per cent from Rs 7.70 per cent.
The 8.15 per cent government security maturing in 2026 declined to Rs 103.8700 from Rs 104.07, while yield gained to 7.64 per cent from 7.62 per cent.

The 8.27 per cent government security maturing in 2020, the 7.28 per cent government security maturing in 2019 and the 8.83 per cent government security maturing in 2023 also quoted lower to Rs 102.15, Rs 98.41 and Rs 106.43 respectively.
The overnight call money rates finished lower at 6.50 per cent from Wednesday's level of 7.20 per cent. It moved in a wide range of 7.25 per cent and 6.00 per cent and the 4-days call money rates finished 7.50 per cent. It moved in range of 7.50 per cent and 6.50 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 38.84 billion in 17-bids at the 4-days repo auction at a fixed rate of 7.50 per cent today morning, while it sold securities worth Rs 34.85 billion from 25-bids at the 1-day reverse repo auction at a fixed rate of 6.50 per cent on march 4.