Bonds snap two-day fall, call rates remain weak

Government bonds (G-Secs) prices rebounded smartly, breaking a two-session downtrend following fresh demand from corporates and retail investors.
Interbank call money market, however remained lackluster due to mute demand from borrowing banks in the face of high liquidity movement in the system.
The 7.59 per cent government security maturing in 2026 rose to Rs 100.90 from Rs 100.78 earlier, while its yield softened to 7.46 per from 7.47 per cent.
The 7.88 per cent government security maturing in 2030 climbed to Rs 101.40 as against Rs 100.7750, while its yield eased to 7.76 per cent from 7.79 per cent.
The 7.59 per cent government security maturing in 2029 firmed up to Rs 99.50 compared to Rs 99.27, while its yield inched down to 7.65 from 7.68 per cent.

The 7.72 per cent government security maturing in 2025 the 8.27 per cent government security maturing in 2020 and the 7.68 per cent government security maturing in 2023 also quoted substantially higher at Rs 100.5150, Rs 103.1150 and Rs 100.60,

respectively.
The overnight call money rates slipped further to settle at 6.15 per cent from Thursday's level of 6.30 per cent. It largely moved in a tight range of 6.70 per cent and 6.05 per cent during the day.
Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 121.10 billion in 22-bids at the three-day overnight repo auction at a fixed rate of 6.50 per cent this afternoon, while it sold securities worth Rs 39.55 billion from 27-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent yesterday evening.