Bonds surge, call rates decline

The government bond (G-Sec) rallied further on sustained buying support from banks and corporates.
Meanwhile, the overnight call money rate declined due to lack of demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 surged to Rs 100.80 from Rs 100.7025, while its yield eased to 8.70 per cent from 8.72 previously.
The 8.12 per cent government security maturing in 2020 gained to Rs 97.10 from Rs 97.00, while yield fell to 8.72 per cent from 8.74 per cent.
The 8.35 per cent government security maturing in 2022 also climbed to Rs 97.70 as against Rs 97.62, while yield edged down to 8.76 per cent from 8.77 per cent.

The 8.28 per cent government security maturing in 2027 moved up to Rs 96.13 as compared to Rs 96.12, while yield held stable at 8.78 per cent.

The 8.24 per cent government security maturing in 2027, 7.80 per cent government security maturing in 2020 and 7.16 per cent government security maturing in 2023 were also quoted higher at Rs 95.95, Rs 95.7250 and Rs 90.08, respectively.
The overnight call money rates ended lower at 8.00 per cent from 8.30 per cent yesterday. It moved in wide range of 9.50 per cent and 7.00 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 181.95 billion in 41-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 15.44 billion from 11-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.