Gilts end modestly higher ahead of IIP data; call rates spike

The government bond (G-Sec) prices rebounded to close modestly higher in lacklustre trade on mild buying support from banks and corporates even as traders remained cautious ahead of IIP data outcome later in the day.
On the other hand, the inter-bank call money rates recovered due to good demand from borrowing banks in the face of tight liquidity conditions in the banking system.
The benchmark 7.72 per cent 10-year benchmark bond maturing in 2025 edged a tad higher to Rs 99.64 from Rs 99.63, while its yield held steady at 7.77 per cent.
The 7.68 per cent government security maturing in 2023 recouped to Rs 98.64 compared to Rs 98.6225, while its yield softened to 7.90 per cent.

The 7.88 per cent government security maturing in 2030 rose to Rs 99.83 as against Rs 99.8000, its yield held stable at 7.90 per cent.
The 8.40 per cent government security maturing in 2024, the 8.27 per cent government security maturing in 2020 and the 6.35 per cent government security maturing in 2020 also gained to settle at Rs 102.86, Rs 101.4250 and Rs 94.21, respectively.
The overnight call money rates ended firmly higher at 7.35 per cent from Thursday's closing level of 6.30 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 53.17 billion in 12-bids at the 3-day overnight repo auction at a fixed rate of 7.25 per cent this morning, while it sold securities worth Rs 84.43 billion from 37-bids at the reverse repo auction at a fixed rate of 6.25 per cent late yesterday.