Bonds slip, call rates turn higher

Government bonds (G-Secs) slipped on selling pressure from banks and corporates, while the overnight call money rates turned higher following good demand from borrowing banks amid adequate liquidity in the banking system.
The 7.59 per cent government security maturing in 2026 declined to Rs 102.92 from Rs 103.3050 previously, while its yield rose to 7.16 per cent from 7.10 per cent.
The 7.59 per cent government security maturing in 2029 dipped to Rs 103.0125 from Rs 103.53, while its yield gained to 7.22 per cent from 7.16 per cent.
The 7.88 per cent government security maturing in 2030 fell to Rs 105.80 from Rs 106.2275, while its yield moved up to 7.20 per cent from 7.15 per cent.

The 7.61 per cent government security maturing in 2030, the 7.68 per cent government security maturing in 2023 and the 7.72 per cent government security maturing in 2025 also quoted lower to Rs 103.84, Rs 102.92 and Rs 103.25, respectively.
The overnight call money rates finished higher at 6.35 per cent from last weekends closing level of 6.00 per cent. It resumed higher at 6.55 per cent and moved in a range of 6.55 per cent and 6.30 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 33.53 billion in 7-bids at the overnight repo auction at a fixed rate of 6.50 per cent as on today.

Its sold securities worth Rs 12.76 billion from 14-bids at the 2-days reverse repo auction at a fixed rate of 6.00 per cent as on August 20.