Bonds surge, call rates finish higher

Government bonds (G-Secs) surged following rising demand from corporates and banks, and the interbank call rates also finished higher due to good demand from borrowing banks amid tight liquidity conditions in the banking system.
The 7.59 per cent government security maturing in 2026 advanced to Rs 104.1325 as compared to Rs 103.6975 previously, while its yield moved down to 6.98 per cent from 7.04 per cent.
The 7.59 per cent government security maturing in 2029 firmed up to Rs 104.3075 from Rs 103.8100, while its yield edged down to 7.07 per cent from 7.12 per cent.
The 7.61 per cent government security maturing in 2030 climbed to Rs 105.1450 from Rs 104.7050, while, its yield down to 7.02 per cent from 7.07 per cent.

The 7.88 per cent government security maturing in 2030, the 7.68 per cent government security maturing in 2023 and the 7.72 per cent government security maturing in 2025 were also quoted higher at Rs 106.78, Rs 103.95 and Rs 104.3550, respectively.
The overnight call money rates finished higher at 6.45 per cent from Wednesday's level 6.30 per cent. It resumed higher at 6.55 per cent and moved in a range of 6.55 per cent and 6.40 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 30.15 billion in 6-bids at the overnight repo auction at a fixed rate of 6.50 per cent as on today, while its sold securities worth Rs 27.66 billion from 21-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on September 21.