Gilt reacts downward, call rate recovers slightly

The government bonds reacted downwards sharply on fresh selling by banks and corporates while call money rate recovered slightly on renewed demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 dropped to Rs 99.97 from Rs 100.3075, while its yield rose to 8.83 per cent from 8.78 per cent.
The 8.28 per cent government security maturing in 2027 also dipped to Rs 93.85 from Rs 94.01, while its yield firmed up to 9.08 per cent from 9.06 per cent.
The 8.24 per cent government security maturing in 2027 declined to Rs 93.64 from Rs 93.84, while its yield moved up to 9.09 per cent from 9.06 per cent.

The 8.12 per cent government security maturing in 2020, the 8.35 per cent government security maturing in 2022 and the 7.28 per cent government security maturing in 2027 were also softened to Rs 96.00, Rs 96.80 and Rs 94.00 respectively.
The overnight call money rate resumed higher at 7.25 per cent and moved in a wide range of 7.95 per cent and 5.05 per cent before settling at 7.20 per cent from last close of 7.05 per cent.
Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 50.31 billion in 16-bids at the three-days repo auction at a fixed rate of 8.00 per cent today morning while sold securities worth Rs 132.61 billion in 27-bids at the one-day reverse repo auction at a fixed rate of 7.00 per cent yesterday evening.