Bonds surges, call rate ends lower

The government bonds (G-Sec) surged on sustained demand from banks and corporates while, call rates 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 101.29 from Rs 100.9175 previously, while its yield declined to 8.44 per cent from 8.48 per cent.
The 8.40 per cent government security maturing in 2024 rose to Rs 100.53 from Rs 100.27, while its yield moved down to 8.32 per cent from 8.36 per cent.
The 8.83 per cent government security maturing in 2023 also gained up to Rs 102.1675 from Rs 101.8375, while its yield fell to 8.48 per cent from 8.53 per cent.

The 8.27 per cent government security maturing in 2020, the 7.28 per cent government security maturing in 2019 and the 8.35 per cent government security maturing in 2022 also ended higher at Rs 99.51, Rs 96.08 and Rs 99.26, respectively.
The overnight call money rates resumed lower at 8.25 per cent from previous close of 9.00 per cent and moved in a range of 8.80 per cent and 8.00 per cent before closing at 8.25 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 172.31 billion in 43-bids at the one-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 14.93 billion from 8-bids at the 5-days reverse repo auction held on October 21, 2014 at a fixed rate of 7.00 per cent.