Gilts decline, call rates end lower

The government bond (G-Sec) prices declined on the back of fresh selling pressure from banks and corporates amidst profit-taking by market participants.
The call money rates also ended lower at the overnight call money market here today due to subdued demand from borrowing banks amid tight liquidity conditions in the banking system.
Meanwhile, the three-days call money rate recovered on good demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 fell to Rs 100.98 from Rs 101.1250, while yield moved up to 8.67 per cent from 8.65 per cent, previously.
The 8.60 per cent government security maturing in 2028 dropped to Rs 100.18 from Rs 100.47, while yield rose to 8.58 per cent from 8.54 per cent.

The 8.12 per cent government security maturing in 2020 also dipped to Rs 97.84 from Rs 97.9150, while its yield inched up to 8.56 per cent from 8.55 per cent.

The 8.27 per cent government security maturing in 2020, the 8.35 per cent government security maturing in 2022 and the 7.80 per cent government security maturing in 2020 also quoted lower at Rs 99.2875, Rs 98.28 and Rs 96.45, respectively.
The overnight call money rates ended lower at 8.50 per cent from 9.00 per cent and moved in a range to 8.50 per cent and 8.00 per cent. However, the 3-days call money rate finished higher at 8.40 per cent as compared to 7.08 per cent last Friday. It moved in a wide range of 9.05 per cent and 7.75 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 70.95 billion in 31-bids at the 3-days repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 6.44 billion from 5-bids at 1-day reverse repo auction at a fixed rate of 7.00 per cent, yesterday evening.