Gilts recovers; call rates ends higher

The government bond (G-Sec) prices recovered on fresh buying support from banks and corporates.
The overnight call money rate ended higher at the money market due to good demand from borrowing banks amid tight liquidity in the banking system.
The 10-year benchmark bond 8.40 per cent maturing in 2024 climbed to Rs 102.2875 from Rs 102.16 previously, while its yield fell to 8.04 per cent compared with 8.06 per cent.
The 7.27 per cent government security maturing in 2025 rose to Rs 99.0325 against Rs 98.86, while its yield eased to 7.86 per cent from 7.89 per cent.
The 8.27 per cent government security maturing in 2020 advanced to Rs 100.8250 from Rs 100.77, while its yield moved down to 8.06 per cent from 8.08 per cent.

The 8.60 per cent government security maturing in 2028, the 7.88 per cent government security maturing in 2030 and the 7.68 per cent government security maturing in 2023 were also quoted higher at Rs 103.62, Rs 98.39 and Rs 97.65, respectively.
The overnight call money rates ended higher at 7.20 per cent compared to 7.00 per cent yesterday after trading in a tight range of 7.30 per cent and 6.25 per cent.
Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 80.61 billion in 17-bids at 1-day repo auction at a fixed rate of 7.25 per cent this morning. While, it sold securities worth Rs 147.11 billion from 33-bids at the 1-day Overnight reverse repo auction at a fixed rate of 6.25 per cent as on June 29.