Gilts maintain buoyancy; call rate rebounds

The government bond (G-Sec) prices extended gains for the fifth straight day on strong appetite from banks and corporates.
The overnight call money rates recovered following fresh demand from borrowing banks and the three-days call money rate also strengthened further amid tight liquidity conditions in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 jumped to Rs 101.2250 from Rs 100.76, while its yield dropped to 8.64 per cent from Rs 8.77 per cent.
The 8.12 per cent government security maturing in 2020 rose to Rs 96.9650 from Rs 96.62, while yield declined to 8.74 per cent from 8.84 per cent.

The 8.24 per cent government security maturing in 2020 spiked to Rs 95.17 from Rs 94.67, while yield slipped to 8.89 per cent from Rs 9 per cent.
The 8.28 per cent government security maturing in 2027 also spurted to Rs 95.46 from Rs 94.92, while its yield fell fell to 8.86 per cent from 8.98 per cent.

The 8.35 per cent government security maturing in 2022, the 7.80 per cent government security maturing in 2020 and the 7.16 per cent government security maturing in 2023 also quoted substantially higher at Rs 97.95, Rs 95.80 and Rs 80.70, respectively.
The overnight call money rate finished sharply higher at 8.20 per cent from 7.10 per cent yesterday and the 3-days call money rate also ended firm at 8.50 per cent as against 7.50 per cent last Friday. It fluctuated between 8.55 per cent and 7.50 per cent earlier.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 117.01 billion in 24-bids at the 3-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 54.16 billion from 17-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.