Bonds surge; call rates end higher

The government bonds (G-Secs) surged on fresh buying support from banks and corporates.
The overnight call money rate ended higher at the money market due to good demand from borrowing banks amid tight liquidity in the banking system.
The 8.40 per cent 10-year benchmark bond maturing in 2024 climbed to Rs 103.1975 from Rs 103.07 previously, while its yield eased to 7.92 per cent from 7.94 per cent.
The 8.60 per cent government security maturing in 2028, rose to Rs 105.23 from Rs 105.0850, while its yield moved down to 7.96 per cent from 7.98 per cent.
The 8.83 per cent government security maturing in 2023 also gained to Rs 105.22 from Rs 105.10, while its yield went down to 8.00 per cent from 8.02 per cent.

The 8.15 per cent government security maturing in 2026, 8.27 per cent government security maturing in 2020 and the 8.12 per cent government security maturing in 2020 were also quoted higher at Rs 101.8675, Rs 101.2075 and Rs 100.43, respectively.
The overnight call money rates ended higher at 8.05 per cent from its last Friday's closing level of 7.25 per cent. It resumed higher at 8.10 and moved in range of 8.20 per cent and 7.60 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 111.57 billion in 27-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 21.66 billion from 11-bids at the 3-days reverse repo auction at a fixed rate of 7.00 per cent as on December 05.