Bonds surge, call rate remains low

The government bond prices surged on sustained buying support from banks and corporates, while the overnight call money rates remained lower at the money market due to lack of demand from borrowing banks.
The 8.40 per cent government security maturing in 2024 advanced to Rs 99.20 from Rs 99.00 previously, while its yield moved-down to 8.52 per cent from 8.55 per cent.
The 8.60 per cent government security maturing in 2028 climbed to Rs 99.3375 from Rs 99.1225, while yield edged-down to 8.68 per cent as against 8.71 per cent.
The 8.83 per cent 10-year benchmark bond maturing in 2023 also rose to Rs 100.93 from Rs 100.7325, while its yield fell to 8.68 per cent from 8.71 per cent.

The 8.27 per cent government security maturing in 2020, the 8.12 per cent government security maturing in 2020, the 7.80 per cent government security maturing in 2020 and 9.20 per cent government security maturing in 2030 were also quoted higher at Rs 98.43, Rs 97.31, Rs 95.95 and Rs 103.66, respectively.
The overnight call money rates ended lower at 6.90 per cent as against yesterday's 7.00 per cent. It moved in a range of 7.60 per cent and 6.90 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 24.16 billion in 7-bids at the one day repo auction at a fixed rate of 8.00 per cent, while it sold securities worth Rs 258.83 billion from 40-bids at the one-day reverse repo auction at a fixed rate of 7.00 per cent, last Thursday.