Bonds turn bearish, call rate drops

The government securities (G-Sec) turned bearish on selling pressure from banks and corporates and the overnight call money market rates dropped further due to lack of demand from borrowing banks amidst ample liquidity in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 fell to Rs 100.2250 from Rs 100.5850 previously, while its yield moved-up to 8.79 per cent from 8.74 per cent.
The 8.12 per cent government security maturing in 2020 moved down to Rs 95.21 from Rs 95.29, while yield edged- down to 9.08 per cent from 9.06 per cent.
The 7.28 per cent government security maturing in 2019 declined to Rs 93.29 per cent from Rs 93.42, while its yield gained to 8.91 per cent from 8.88 per cent.

The 8.28 per cent government security maturing in 2027, the 8.24 per cent government security maturing in 2027 and the 7.16 per cent government security maturing in 2023 were also quoted lower at Rs 92.93, Rs 92.74 and Rs 87.72, respectively.
The overnight call money rate fell to 1.25 per cent from 7.00 per cent yesterday before moving in a wide range of 8.65 per cent and 1.25 per cent. The 4-days call money rate closed at 8.95 per cent. It moved in a range of 9.15 per cent 8.25 per cent.
The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 364.73 billion in 55-bids at the 4-days repo auction at a fixed rate of 8.00 per cent today morning, while sold securities worth Rs 105.88 billion from 22-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last Friday.