Bonds turn weak on fresh selling, call rates firm

Government bonds (G-Secs) turned weak after a brief recovery due to fresh bouts of selling by banks and market participants.
On the other hand, the interbank money market remained active owing to good demand from borrowing banks in the face of tight liquidity in the banking system.
The 7.59 per cent government security maturing in 2026 declined to Rs 101.03 from Rs 101.1675 earlier, while its yield edged higher to 7.44 per cent from 7.42 per cent.
The 7.88 per cent government security maturing in 2030 moved down to Rs 101.18 as against Rs 101.28, while its yield inched up to 7.74 per cent from 7.73 per cent.

The 7.59 per cent government security maturing in 2029 slipped to Rs 99.68 compared to Rs 99.8175, while its yield rose to 7.64 per cent from 7.61 per cent.
The 7.68 per cent government security maturing in 2023, the 7.72 per cent government security maturing in 2025 and the 8.27 per cent government security maturing in 2020 also quoted substantially lower at Rs 100.71, Rs 100.63 and Rs 103.1275, respectively.
The overnight call money rates finished marginally higher at 6.65 per cent from Monday's closing level of 6.60 per cent. It hovered between 6.85 per cent and 6.40 per cent during early trade.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 2008.01 billion in 43-bids at the overnight repo auction at a fixed rate of 6.50 per cent this evening.