Bonds surges, call rates end higher

Government bonds (G-Secs) surged further on sustained buying from banks and corporates and the overnight call money rate remained higher at the money market due good demand from borrowing banks amid tight liquidity in the banking system.
The 8.40 per cent government security maturing in 2024 rose to Rs 104.9775 from Rs 104.7125 previously, while its yield fell to 7.65 per cent from 7.69 per cent.
The 8.60 per cent government security maturing in 2028 climbed to Rs 107.59 from Rs 107.24, while its yield moved down to 7.68 per cent from 7.72 per cent.
The 8.27 per cent government security maturing in 2020 also rose to Rs 102.7850 from Rs 102.5700, while its yield declined to 7.62 per cent from 7.67 per cent.

The 8.15 per cent government security maturing in 2026, the 8.83 per cent government security maturing in 2026 and the 8.28 per cent government security maturing in 2027 were also quoted higher at Rs 104.2550, Rs 107.0150 and Rs 104.40, respectively.
The overnight call money rates ended higher at 7.90 per cent from its last Friday's closing level of 7.00 per cent. It resumed higher at 8.05 and moved in a range of 8.20 per cent and 7.40 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 147.12 billion in 39-bids at the 1-day repo auction at a fixed rate of 7.75 per cent as on today, while it sold securities worth Rs 34.64 billion from 19-bids at the 3-days reverse repo auction at a fixed rate of 6.75 per cent as on Jan 30.