Gilts rebound on fresh demand; call rates shoot up

The government bond (G-Sec) prices rebounded today on good buying support from banks and corporates.
The overnight call money rate also recovered smartly on renewed demand from borrowing banks amid shortage of funds in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 rose to Rs 101.01 from Rs 100.81, while its yield fell to 8.67 per cent from 8.70 yesterday.
The 8.12 per cent government security maturing in 2020 spurted to Rs 97.0450 as compared to Rs 96.93, while yield slipped to 8.72 per cent from Rs 8.75 per cent.
The 8.28 per cent government security maturing in 2027 spiked to Rs 95.55 as against Rs 95.19, while yield fell to 8.85 per cent from 8.90.

The 8.24 per cent government security maturing in 2027 also firmed up to Rs 95.3175 from Rs 94.95, while yield moved down to 8.86 per cent from 8.90 per cent.

The 8.35 per cent government security maturing in 2022, 7.28 per cent government security maturing in 2019 and 7.80 per cent government security maturing in 2020 also quoted substantially higher at Rs 98.04, Rs 94.83 and Rs 95.93, respectively.
The call rate rallied to finish at 9.00 per cent from Wednesday's level of 7.10 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 98.57 billion in 18-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 36.74 billion from 13-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.