Bonds retreat on fresh selling; call rate too slips

The government bond (G-Sec) prices declined, snapping five-straight session rising trend on the back of fresh selling pressure from banks and corporates.
The overnight call money rates also fell due to lack of demand from borrowing banks amid ample liquidity in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 dropped to Rs 100.99 from Rs 101.2250, while its yield rose to 8.67 per cent from Rs 8.64 per cent.
The 8.12 per cent government security maturing in 2020 moved down to Rs 96.77 from Rs 96.9650, while yield firmed up to 8.78 per cent from 8.74 per cent.

The 8.28 per cent government security maturing in 2027 eased to Rs 95 from Rs 95.46, while yield advanced to 8.78 per cent from Rs 8.86 per cent.
The 8.28 per cent government security maturing in 2027 also spurted to Rs 95.46 from Rs 94.92, while its yield fell fell to 8.86 per cent from 8.98 per cent.

The 8.24 per cent government security maturing in 2027, the 8.35 per cent government security maturing in 2022 and the 7.80 per cent government security maturing in 2020 also quoted substantially lower at Rs 94.74, Rs 97.82 and Rs 95.6475, respectively.
The overnight call money rate slumped to 7.60 per cent from last weekend level of 8.20 per cent after fluctuating between a high of 8.50 per cent and 7.50 per cent in earlier.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 159.69 billion in 35-bids at the one day repo auction at a fixed rate of 8.00 per cent.