Bonds retreat on renewed selling; call rates remain firm

The government bond (G-Sec) prices retreated after a brief overnight recovery on the back of fresh selling pressure from banks and corporates amid profit taking by market participants ahead of the weekend.
Call money rates continued to rule firm for the second straight day at the overnight call money market due to sustained demand from borrowing banks amidst tight liquidity conditions in the banking system.
The 10-year benchmark bond 8.40 per cent maturing in 2024 dropped to Rs 103.89 from Rs 104.07 yesterday, while its yield rose to 7.80 per cent as against 7.77 per cent.
The 8.60 per cent government security maturing in 2028 declined to Rs 106.4875 from Rs 106.6725, while its yield edged up to 7.80 per cent compared to 7.78 per cent.

The 8.27 per cent government security maturing in 2020 slipped to Rs 102.09 from Rs 102.15, while yield moved up to 7.77 per cent from 7.75 per cent.
The 8.15 per cent government security maturing in 2026 fell to Rs 102.62 from Rs 102.8750, while yield gained to 7.80 per cent against 7.77 per cent.

The 8.83 per cent government security maturing in 2023, the 8.12 per cent government security maturing in 2020 and the 7.80 per cent government security maturing in 2020 also quoted lower at Rs 105.94, Rs 101.3575 and 99.94, respectively.
The interbank call rates finished marginally higher at 7.90 per cent from Thursday's close of 7.55 per cent after hitting a intra-day low of 6.50 per cent. While the three-day call money rates opened at 7.55 per cent and moved in a range of 8.05 per cent and 7.10 per cent before settling at 8.00 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 55.88 billion in 18-bids at the 3 days repo auction at a fixed rate of 7.50 per cent this morning, while it sold securities worth Rs 30.47 billion from 19-bids at the one day reverse repo auction at a fixed rate of 6.50 per cent late yesterday.