Gilts end subdued, call rates finish mixed

The government bond (G-Sec) prices declined on the back of fresh selling pressure from banks and corporates amid profit-taking by market participants.
Meanwhile, the call money rates edged up further at the overnight call money market here today due to modest demand from borrowing banks amid tight liquidity conditions in the banking system.
However, the three-days call money rate dropped sharply owing to lack of demand.
The 8.83 per cent 10-year benchmark bond maturing in 2023 slumped to Rs 100.36 from Rs 100.5650, while yield moved up to 8.77 per cent from 8.74 per cent.
The 8.60 per cent government security maturing in 2028 fell to Rs 99.78 from Rs 99.99, while yield gained to 8.63 per cent against 8.60 per cent previously.

The 8.35 per cent government security maturing in 2022 also drifted down to Rs 97.55 from Rs 97.6650, while its yield inched-up to 8.79 per cent from 8.77 per cent.

The 8.27 per cent government security maturing in 2020, the 8.28 per cent government security maturing in 2027 and the 7.80 per cent government security maturing in 2020 also quoted substantially lowe at Rs 98.50, Rs 96.05 and Rs 95.5950, respectively.
The overnight call money rates ended higher at 7.75 per cent from 7.05 per cent after hitting a high of 8.20 per cent earlier. The 3-days call money rate plunged sharply at 7.08 per cent as compared to 9.00 per cent last Friday. It moved in a wide range of 8.50 per cent and 7.00 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 206.05 billion in 51-bids at the 3-days repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 36.01 billion from 14-bids at 1-day reverse repo auction at a fixed rate of 7.00 per cent, yesterday evening.