Bonds tumble, but call rates end higher

The government bonds (G-secs) dropped further today on heavy selling pressure from banks and corporates.
However, the overnight call money rates finished higher due to solid demand from borrowing banks amid tight liquidity in the banking system.
The 7.72 per cent 10-year benchmark bond maturing in 2025 declined to Rs 99.96, from Rs 100.23 previously, while its yield increased to 7.73 per cent.
The 7.88 per cent government security maturing in 2030 dipped to Rs 100.16 from Rs 100.56 while its yield inched up to 7.86 per cent, from 7.81 per cent.
The 7.68 per cent paper maturing in 2023 slipped to Rs 99.61, from Rs 99.87, while its yield moved up to 7.74 per cent from 7.70 per cent.

The 8.27 per cent paper due for maturity in 2020, the 7.83 per cent maturing in 2018 and the 7.59 per cent maturing in 2029 were also quoting lower at Rs 101.90, Rs 100.71 and Rs 98.90, respectively.
The overnight call money rates closed higher at 7.70 per cent from Friday's closing level of 5.70 per cent. It resumed higher at 6.80 per cent and moved in a range of 7.70 per cent and 6.70 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 19,943 crore in 41 bids at the overnight repo auction at a fixed rate of 6.75 per cent today morning while it sold securities worth Rs 1,938 crore from 15 bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on November 7.