Bonds surge; call rate remains lower

The government bond (G-Sec) surged on the sustained buying support from banks and corporates.
The call money remained lower at the overnight call money market here today due to lack of demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.40 per cent 10-year benchmark bond maturing in 2024 rose to Rs 103.7875 from Rs 103.54 previously, while its yield declined to 7.83 per cent from 7.87 per cent.
The 8.60 per cent government security maturing in 2028 climbed to Rs 106.0025 from Rs 105.7225, while its yield fell to 7.87 per cent from 7.90 per cent.

The 8.83 per cent government security maturing in 2023 also advanced to Rs 105.87 from Rs 105.62, while its yield moved down to 7.90 per cent from 7.94 per cent.
The 8.27 per cent government security maturing in 2020, the 8.28 per cent government security maturing in 2027 and the 8.12 per cent government security maturing in 2020 were also quoted higher at Rs 101.70, Rs 102.93 and Rs 100.97, respectively.
The overnight call money rates ended lower at 7.00 per cent from yesterday's close of 7.90 per cent. It had resumed higher at 8.05 and moved in a range of 8.05 and 7.00 per cent. However, 3-day call money rates resumed higher at 8.05 per cent and moved in a range of 8.15 and 7.00 per cent before settling steady at its last Friday's level of 8.00 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 142.05 billion in 33-bids at the 3-days repo auction at a fixed rate of 8.00 per cent today morning, while its sold securities worth Rs 21.21 billion from 15-bids at 1-day reverse repo auction at a fixed rate of 7.00 per cent, as on Dec 11.