Bonds slips on weak demand; call rates retreat

Government bonds (G-Secs) prices declined on the back of renewed selling by corporates and banks amid profit booking by market participants ahead of the weekend.
The interbank call money market also turned bearish after a two-day rally owing to lack of demand from borrowing banks amidst comfortable liquidity situation in the banking system.
The 7.59 per cent government security maturing in 2026 fell back to Rs 99.0750 from Rs 99.1250 yesterday, while its yield continued a stable trend at 7.72 per cent.
The 7.88 per cent government security maturing in 2030 declined to Rs 98.9950 as compared to Rs 99.08, its yield gained to 8.00 per cent from 7.99 per cent.

The 8.27 per cent government security maturing in 2020 also moved down to Rs 102.27 as against Rs 102.34, while its advanced to 7.64 from 7.62 per cent.
The 7.59 per cent government security maturing in 2029, the 7.72 per cent government security maturing in 2025 and the 7.68 per cent government security maturing in 2023 were also quoted lower at Rs 97.01, Rs 99.29 and Rs 99.22, respectively.
The overnight call money rates ended sharply lower at 5.90 per cent from Thursday's closing level of 7.35 per cent after touching a intra-day high of 7.10 per cent. It resumed a tad weak at 7.00 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 174.36 billion in 48-bids at one-day repo auction at a fixed rate of 6.75 per cent this evening, while it sold securities worth Rs 10.11 billion from 23-bids at the reverse repo auction at a fixed rate of 5.75 per cent late yesterday.