Bonds surge, call rates turn weak

Government bonds (G-Secs) prices surged further following sustained demand from corporates and retail investors. While, Interbank call money market, however remained lackluster due to mute demand from borrowing banks in the face of high liquidity movement in the system.
The 7.59 per cent government security maturing in 2026 climbed to Rs 100.0350 from Rs 100.99 earlier, while its yield ruled stable at 7.44 per cent.
The 7.88 per cent government security maturing in 2030 rose to Rs 101.2025 as against Rs 100.0125, while its yield eased to 7.74 per cent from 7.76 per cent.
The 7.59 per cent government security maturing in 2029 firmed up to Rs 99.7850 compared to Rs 99.49, while its yield moved down to 7.61 from 7.65 per cent.

The 7.72 per cent government security maturing in 2025 the 8.27 per cent government security maturing in 2020 and the 7.68 per cent government security maturing in 2023 were also quoted substantially higher at Rs 100.67, Rs 103.0775 and Rs 100.54, respectively.
The overnight call money rates ended lower to close at 6.00 per cent from Thursday's level of 6.40 per cent. It moved in a range of 6.65 per cent and 6.00 per cent during the day.
While, 3-days call money rates ended at 6.65 per cent before moving in a range of 6.75 and 6.25 per cent.
Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 103 billion in 26-bids at the three-day overnight repo auction at a fixed rate of 6.50 per cent this afternoon, while it sold securities worth Rs 29.14 billion from 26-bids at the One-day overnight reverse repo auction at a fixed rate of 6.00 per cent yesterday evening.