Bonds retreat on fresh selling; call rates end lower

The government bond (G-Secs) prices surrendered overnight gains following renewed selling pressure from corporates as well as foreign funds amid profit taking by market participants ahead of the weekend.
The interbank call money rate also ended lower due to lack of demand from borrowing banks following tight liquidity conditions in the banking system.
The 7.72 per cent government security maturing in 2025 dropped to Rs 99.7525 from yesterday's close of Rs 100.0475 while its yield firmed up to 7.76 per cent.
The 7.88 per cent government security maturing in 2030 slipped to Rs 99.70 from Rs 100.0500, while yield moved up to 7.91 per cent.

The 7.68 per cent government security maturing in 2023 declined to Rs 99.68 compared to Rs 99.8625, while yield rose to 7.73 per cent.
The 8.27 per cent government security maturing in 2020 drifted to Rs 101.9000 against Rs 102.0200, while its yield gained to 7.76 per cent.

The 7.59 per cent government security maturing in 2029, the 8.40 per cent government security maturing in 2024 and the 7.35 per cent government security maturing in 2024 also quoted lower at Rs 98.50, Rs 103.0200 and Rs 97.500, respectively.
The overnight borrowing rates finished lower at 6.10 per cent from 6.60 per cent previously. It touched a high of 6.15 per cent in early trade.

The 3-day call money rates finished at 6.00 per cent and it moved in a range of 6.75 per cent and 5.75 per cent.
Meanwhile, the Reserve Bank of India under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 19.97 billion in 6-bids at the three-days overnight repo auction at a fixed rate of 6.75 per cent this morning, while it sold securities worth Rs 43.47 billion from 31-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent yesterday evening.