Bonds slip; call rate ends lower

The government bond (G-Sec) slipped on the back of fresh selling pressure from banks and corporates amid profit-taking by market participants.
The overnight call rates also ended lower due to lack of demand from borrowing banks following tight liquidity conditions in the banking system.
The 8.40 per cent government security maturing in 2024 eased to Rs 99.62 from Rs 99.63 previously, while its yield ruled stable at 8.45 per cent.
The 8.60 per cent government security maturing in 2028 fell to Rs 100.0575 from Rs 100.18, while its yield moved up to 8.59 per cent from 8.57 per cent.
The 8.83 per cent government security maturing in 2023 also declined to Rs 101.0950 from Rs 101.1475, while its yield edged up to 8.65 per cent from 8.64 per cent.

The 8.27 per cent government security maturing in 2020, and the 8.12 per cent government security maturing in 2020, and the 8.28 per cent government security maturing in 2027 and the 7.28 per cent government security maturing in 2019 were also quoted lower at Rs 98.9075, Rs 97.7075, Rs 96.60 and Rs 95.3550, respectively.
The overnight call money rates ended lower at 7.50 per cent from yesterday's level of 7.95 per cent. It moved in a range of 7.50 per cent and 7.10 per cent and the 3-days call money also finish lower at 7.75 per cent from last Friday's level of 7.95, it moved in a range of 8.16 and 7.40 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 124.82 billion in 37-bids at the 3-days repo auction at a fixed rate of 8.00 per cent, while it sold securities worth Rs 36.74 billion from 15-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent, yesterday evening.