Bonds slip on fresh selling, call rates remain weak

Government bonds (G-Secs) prices fell back after a brief overnight rebound following fresh bout of profit-taking from corporates and market participants.
Interbank call rates also dropped for a second day owing to lackluster demand from borrowing banks in the face of adequate liquidity in the banking system.
The 7.72 per cent government security maturing in 2025 moved down to Rs 100.4850 from Rs 100.60 yesterday, while its yield edged higher to 7.65 per cent.
The 7.88 per cent government security maturing in 2030 softened to Rs 100.90 against Rs 100.95 previously, but yield held stable at 7.77 per cent.
The 7.68 per cent government security maturing in 2023 moved down to Rs 100.11 compared to Rs 100.1550, while its yield inched up to 7.66 per cent.

The 8.27 per cent government security maturing in 2020, the 7.35 per cent government security maturing in 2024 and the 8.40 per cent government security maturing in 2024 also quoted finished lower at Rs 102.26, 97.9250 and 103.7450, respectively.
The overnight borrowing rates ended slightly lower at 5.80 per cent from Monday's closing level of 6.00 per cent after trading between 6.95 per cent and 5.75 per cent earlier.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 109.98 billion in 28-bids at 1-day overnight repo auction at a fixed rate of 6.75 per cent this morning, while sold securities worth Rs 247.36 billion from 35-bids at the reverse repo auction at a fixed rate of 5.75 per cent late yesterday.