Bonds surge, call rates up

Government bonds (G-Secs) surged following sustained demand from corporates and banks and the interbank call money rates also ended higher due to good demand from borrowing banks amid tight liquidity situation in the banking system.
The 7.88 per cent government security maturing in 2030 gained to Rs 103.9650 as compared to Rs 103.6950 previously, while its yield fell to 7.41 per cent from 7.44 per cent.
The 7.59 per cent government security maturing in 2029 advanced to Rs 101.3825 from Rs 101.22, while its yield edged down to 7.42 per cent from 7.44 per cent.
The 7.59 per cent government security maturing in 2026 firmed up to Rs 102.16 from Rs 102.09, while its yield softened to 7.27 per cent from 7.28 per cent.

The 7.61 percent 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 102.13, Rs 102.4150 and Rs 102.3250, respectively.
The overnight call money rates also finished higher at 6.45 per cent from Tuesday's close of 6.40 per cent. It resumed higher at 6.55 per cent and moved in a range of 6.70 per cent and 6.00 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 63.45 billion in 16-bids at the overnight repo auction at a fixed rate of 6.50 per cent as on today, while its sold securities worth Rs 22.07 billion from 19-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on July 19.