Bonds slip, call rates recover

Government bonds (G-Secs) slipped on selling pressure from banks and corporates, while overnight call money rates recovered owing to fresh demand from borrowing banks amidst tight liquidity in the banking system.
The 7.72 per cent government security maturing in 2025 declined to Rs 100.99 from Rs 101.04 previously, while its yield inched up to 7.57 per cent from 7.56 per cent.
The 7.88 per cent government security maturing in 2030 fell to Rs 101.2950 from Rs 101.3750, while its yield edged up to 7.73 per cent from 7.72 per cent.
The 7.68 per cent government security maturing in 2023 moved down to Rs 100.4450 from Rs 100.4825, while its yield ruled stable at 7.60 per cent.

The 8.27 per cent government security maturing in 2020, the 8.40 per cent government security maturing in 2024 and the 7.35 per cent government security maturing in 2024 were also quoted lower to Rs 102.38, Rs 104.08 and Rs 98.3875 respectively.
The overnight call money rates finished higher at 6.85 per cent from last weekend close of 5.90 per cent. It resumed higher at 6.85 per cent and moved in a range of 7.00 per cent and 6.50 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 135.61 billion in a 29-bids at the overnight repo auction at a fixed rate of 6.75 per cent as on today, while it sold securities worth Rs 55.93 billion from 29-bids at the 3-days reverse repo auction at a fixed rate of 5.75 per cent as on October 16.