Bonds under immense selling pressure, call rates also drop

The government bonds (G-Secs) prices continued to witness selling from corporates and market participants.
The call rates also dropped further due to sluggish demand from borrowing banks on the back of tight liquidity conditions in the banking system.
The 7.72 per cent government security maturing in 2025 slumped to Rs 100.23 from Rs 100.27 previously, while its yield held stable to 7.68 per cent.
The 7.88 per cent government security maturing in 2030 fell to Rs 100.56 from Rs 100.60, while its yield ruled steady to 7.81 per cent.
The 8.27 per cent government security maturing in 2020 also dipped to Rs 102.16 from Rs 102.18, while its yield inched up to 7.70 per cent from 7.69 per cent.

The 7.59 per cent government security maturing in 2029, the 7.35 per cent government security maturing in 2024 and the 7.73 per cent government security maturing in 2034 were also ended lower at Rs 99.20, Rs 97.70 and Rs 99.23 respectively.

The overnight call money rates ended lower at 5.70 per cent from Thursday's closing level of 6.60 per cent. It resumed lower at 5.75 per cent and moved in a range of 5.75 per cent and 5.70 per cent.
The 3-days call money rates ended lower at 5.78 per cent from last weekend closing level of 7.30 per cent. It commenced lower at 6.80 per cent and moved in a range of 6.85 per cent and 5.75 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 51.13 billion in 16-bids at the 3-days repo auction at a fixed rate of 6.75 per cent today morning.
The RBI sold securities worth Rs 43.54 billion from 30-bids at the overnight reverse repo auction held on Nov 5, 2015, at a fixed rate of 5.75 per cent.