Gilts fall for second-day on macro concerns; call rates up

Continuing its slide for the second day, the government bond (G-Sec) prices dipped sharply following heavy unwinding from corporates and market participants amid a weak rupee sentiment.
However, the interbank call money rate gained modestly due to increased demand from borrowing banks in the face of tight liquidity conditions.
The 10-year benchmark bond 8.40 per cent maturing in 2024 slumped to Rs 101.95 from Rs 102.37 yesterday, while its yield jumped to 8.09 per cent against 8.03 per cent.
The 8.27 per cent government security maturing in 2020 dropped to Rs 100.71 against Rs 100.94, while its yield rose to 8.09 per cent from 8.04 per cent.

The 8.60 per cent government security maturing in 2028 moved down to Rs 103.39 compared to Rs 103.91, while its yield firmed up to 8.17 per cent from 8.11 per cent.
The 7.72 per cent government security maturing in 2025 declined to Rs 98.91 from Rs 99.28, while its yield went up to 7.88 per cent from 7.82 per cent.

The 8.15 per cent government security maturing in 2026,the 7.88 per cent government security maturing in 2030 and the 8.83 per cent government security maturing in 2023 were also quoted substantially weak at Rs 99.86, Rs 98.1250 and Rs 103.90, respectively.

The overnight call money rates finished marginally higher at 6.80 per cent from Wednesday's closing level of 6.30 per cent after trading between 7.35 per cent and 5.75 per cent in earlier.
Meanwhile, the Reserve Bank of India under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 133.86 billion in 35-bids at the one-day repo auction at a fixed rate of 7.25 per cent this morning, while it sold securities worth Rs 59.63 billion from 26-bids at the one-day reverse repo auction at a fixed rate of 6.25 per cent yesterday evening.