Bonds retreats on fresh selling; call rates recover

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.
While, the interbank call money rate recovered after three-day fall due to good demand from borrowing banks in the face of tight liquidity conditions in the banking system.
The 7.88 per cent government security maturing in 2030 dropped to Rs 100.09 from Thursday's close of Rs 100.3250 while its yield firmed up to 7.87 per cent.
The 7.72 per cent government security maturing in 2025 slipped to Rs 100.15 from Rs 100.32, while yield moved up to 7.70 per cent.

The 7.68 per cent government security maturing in 2023 declined to Rs 99.73 compared to Rs 99.9850, while yield rose to 7.72 per cent.
The 8.27 per cent government security maturing in 2020 drifted to Rs 101.9150 against Rs 102.0150, while its yield gained to 7.76 per cent.

The 8.40 per cent government security maturing in 2024, the 7.59 per cent government security maturing in 2029 and the 8.12 per cent government security maturing in 2020 also quoted lower at Rs 103.20, Rs 99.21 and Rs 101.29, respectively.
The overnight borrowing rates finished higher at 6.00 per cent from 5.77 per cent previously. It touched a high of 6.85 per cent in early trade.

Meanwhile, the Reserve Bank of India under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 153.10 billion in 42-bids at the three-day overnight repo auction at a fixed rate of 6.75 per cent this morning, while it sold securities worth Rs 93.08 billion from 32-bids at the one-day reverse repo auction at a fixed rate of 5.75 per cent yesterday evening.