Bonds slip on renewed selling; call rates remain weak

The government bond (G-Sec) prices retreated after a two-day rally due to fresh selling pressure from banks and corporates amid profit taking by market participants ahead of the weekend.
Interbank call rates dropped further owing to reduced demand from borrowing banks on the back of adequate liquidity in the banking system.
The new benchmark 7.72 per cent government security maturing in 2025 softened to Rs 99.38 from Rs 99.40 yesterday, while its yield held steady at 7.81 per cent.
The 8.40 per cent government security maturing in 2024 moved down to Rs 102.67 against Rs 102.6950, while its yield gained to 7.98 per cent.

The 7.88 per cent government security maturing in 2030 fell to Rs 99.18 as compared to Rs 99.22, its yield edged up to 7.98 per cent.
The 7.68 per cent government security maturing in 2023, the 8.27 per cent government security maturing in 2020 and the 8.24 per cent government security maturing in 2026 also quoted substantially weak at Rs 98.3850, Rs 101.2450 and Rs 100.33, respectively.

The overnight borrowing rates dropped to 6.80 per cent from Thursday's closing level of 7.15 per cent after touching a low of 6.00 per cent in early trade.
Meanwhile, the three-days call money rate ended firmly higher at 7.25 per cent against 7.10 per cent last Friday. It hovered in a range of 7.30 per cent and 6.70 per cent.

Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 24.73 billion in 9-bids at the 3-days overnight repo auction at a fixed rate of 7.25 per cent this morning, while its sold securities worth Rs 20.47 billion from 15-bids at the reverse repo auction at a fixed rate of 6.25 per cent late yesterday.