Bonds slip, call rate recovers

The government bond (G-Sec)prices slipped on selling pressure from banks and corporates, while the overnight call money rates recovered at the money market due fresh demand from borrowing banks amid tight liquidity in the banking system.
The 8.60 per cent government security maturing in 2028 fell to Rs 99.75 from Rs 100.15 previously, while its yield rose to 8.63 per cent from 8.58 per cent.
The 8.40 per cent government security maturing in 2024 declined to Rs 99.3850 from Rs 99.7050, while its yield moved up to 8.49 per cent from 8.44 per cent.
The 8.83 per cent government security maturing in 2023 also dropped to Rs 100.75 from Rs 101.08, while its yield gained to 8.71 per cent from 8.65 per cent.

The 8.27 per cent government security maturing in 2020, the 8.28 per cent government security maturing in 2027, the 6.49 per cent government security maturing in 2015 and 8.24 per cent government security maturing in 2027 were also quoted higher at Rs 98.56, Rs 96.44, Rs 98.5825 and Rs 96.20, respectively.
The overnight call money rates ended lower at 7.20 per cent from 7.50 per cent last Friday. It moved in a wide range of 8.10 per cent and 6.95 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 83.51 billion in 25-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 97.27 billion from 21-bids at the 3-days reverse repo auction at a fixed rate of 7.00 per cent, last Friday.