Bonds slip, call rates end higher

Government bonds (G-Secs) slipped on fresh selling pressure from banks and corporates amid profit-taking by market participants.
The overnight call money rate ended higher at the money market due to good demand from borrowing banks amid tight liquidity in the banking system.
The 8.40 per cent 10-year benchmark bond maturing in 2024 declined to Rs 103.7675 from Rs 103.7875 previously, while its yield held stable at 7.83 per cent.
The 8.83 per cent government security maturing in 2023 dropped to Rs 105.79 from Rs 105.87, while its yield edged-up to 7.91 per cent from 7.90 per cent.
The 8.27 per cent government security maturing in 2020, also fell to Rs 101.58 from Rs 101.70, while its yield moved up to 7.91 per cent from 7.88 per cent.

The 8.12 per cent government security maturing in 2020, 8.28 per cent government security maturing in 2027 and the 8.15 per cent government security maturing in 2026 were also quoted lower at Rs 100.87, Rs 102.82 and Rs 102.45, respectively.

However, the 8.60 per cent government securitiy maturing in 2028 climbed to Rs 106.0200 from Rs 106.0025, while its yield held steady at 7.87 per cent.
The overnight call money rates ended higher at 8.00 per cent from its last Friday's closing level of 7.00 per cent. It resumed higher at 8.17 and moved in range of 8.40 per cent and 7.50 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 186.47 billion in 49-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 27.16 billion from 17-bids at the 3-days reverse repo auction at a fixed rate of 7.00 per cent as on December 12.