Gilts recovers, call rates advance

The government bond (G-Sec) recovered on good buying support from banks and corporates.
The overnight call money rate remained higher due to sustained demand from borrowing banks amidst tight liquidity in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 climbed to Rs 101.48 from Rs 101.08, while its yield fell to 8.60 per cent from 8.66 previously.
The 8.12 per cent government security maturing in 2020 rose to Rs 97.50 as against Rs 97.08, while its yield dipped to 8.63 per cent from Rs 8.72 per cent.
The 8.28 per cent government security maturing in 2027 improved to Rs 96.4850 from Rs 95.89, while its yield moved down to 8.73 per cent from 8.81 per cent.

The 8.35 per cent government security maturing in 2022 shot-up to Rs 98.47 as compared Rs 97.07, while its yield moved down to 8.62 per cent from 8.69 per cent.

The 8.60 per cent government security maturing in 2028, 8.24 per cent government security maturing in 2022 and the 7.80 per cent government security maturing in 2020 were also quoted higher at Rs 100.39, Rs 96.24 and Rs 96.25, respectively.
The overnight call money rates ended higher at 8.25 per cent from yesterday's level of 7.10 per cent. It moved in wide range of 8.25 per cent and 7.15 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 71.20 billion in 21-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 45.43 billion from 18-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent yesterday.