Bonds surge, call rates end lower

The government bonds (G-Secs) surged on fresh buying support from banks and corporates.
While, the overnight call money rate ended lower due to lack of demand from borrowing banks amid ample liquidity in the banking system.
The 8.60 per cent government security maturing in 2028 climbed to Rs 103.64 from Rs 103.1750 previously, while its yield fell to 8.15 per cent from 8.21 per cent.
The 8.40 per cent 10-year benchmark bond maturing in 2024 rose to Rs 102.05 from Rs 101.65, while its yield slipped to 8.09 per cent from 8.15 per cent.
The 8.27 per cent government security maturing in 2020 also advanced to Rs 100.39 from Rs 100.18, while its yield eased to 8.18 per cent from 8.23 per cent.

The 8.83 per cent government security maturing in 2023, 8.12 per cent government security maturing in 2020 and the 8.35 per cent government security maturing in 2022 were also quoted higher at Rs 104.0375, Rs 99.54 and Rs 100.75, respectively.
The overnight call money rates opened lower at 7.50 per cent from yesterday's close of 7.75 per cent and moved in a range of 8.10 per cent and 7.25 per cent before settling at 7.25 per cent. The 3-day call money rate resumed higher at 8.00 per cent and moved in a range of 8.20 per cent and 7.00 per cent before closing higher at 7.90 per cent from last Friday's level of 7.50 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 127.81 billion in 30-bids at the 3-days repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 33.11 billion from 12-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent as on November 27.