Gilts continue upward march; call rates drops sharply

The government bond (G-Sec) prices rose further on sustained demand from banks and corporates.
While, the overnight and the three-days call money rate dropped sharply due to lack of demand from borrowing banks amid comfortable liquidity in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 spurted to Rs 101.18 from Rs 101.01, while its yield declined to 8.64 per cent from 8.67 previously.
The 8.28 per cent government security maturing in 2027 surged to Rs 96.05 as against Rs 95.55, while yield slumped to 8.79 per cent from 8.85.
The 8.24 per cent government security maturing in 2027 rose to Rs 95.90 from Rs 95.3175, while yield moved down to 8.78 per cent from 8.86 per cent.

The 8.12 per cent government security maturing in 2020 firmed up to Rs 97.1675 as compared to Rs 97.0450, while yield softened to 8.70 per cent from Rs 8.72 per cent.

The 8.35 per cent government security maturing in 2022, 7.28 per cent government security maturing in 2019 and 7.16 per cent government security maturing in 20230 also quoted higher at Rs 98.16, Rs 94.94 and Rs 90.08, respectively.
The call rate resumed sharply lower at 7.50 per cent and tumbled further to finish at 7.00 per cent from 9.00 per cent yesterday. The 3-days call money rate also declined to 7.40 per cent as against 8.50 per cent last Friday. It fluctuated between 8.20 per cent and 7.00 per cent earlier.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 33.52 billion in 14-bids at the 3-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 27.78 billion from 13-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.