Bonds surge; call rates remain lower

The government bond prices surged further on sustained buying support from banks and corporates.
While, the overnight call money rates continued their bearish trend due to lack of demand from borrowing banks amidst tight liquidity conditions in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 climbed to Rs 100.71 from Rs 100.39, while its yield fell to 8.71 per cent from 8.76 per cent.
The 8.40 per cent government security maturing in 2024 rose to Rs 99.20 from Rs 99.05, while yield moved down to 8.52 per cent against 8.54 per cent.
The 8.60 per cent government security maturing in 2028 gained to Rs 99.00 from Rs 98.76, while yield declined to 8.72 per cent from 8.76 per cent.

The 8.12 per cent government security maturing in 2020, the 8.27 per cent government security maturing in 2020, the 8.35 per cent government security maturing in 2022 and 8.28 per cent government security maturing in 2027 were also quoted higher at Rs 97.35, Rs 98.58, Rs 97.60 and Rs 95.80, respectively.
The overnight call money rates ended lower at 7.00 per cent from 7.05 yesterday. It moved in a range of 7.50 per cent and 7.00 per cent. The 5-days call money rate opened at 8.35 per cent and closed at 8.50 per cent. It moved in a range of 9.00 and 8.00 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 209.68 billion in 55-bids at the 5-days repo auction at a fixed rate of 8.00 per cent, while it sold securities worth Rs 63.40 billion from 22-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent, yesterday evening.