Gilts recovers on fresh buying; call rates ends lower

The government bond (G-Sec) prices recovered owing to fresh buying by banks and corporates.
Meanwhile, call rates slipped at the inter-bank call money market due to lower demand from borrowing banks on the back of ample liquidity conditions in the banking system.
The 10-year benchmark bond 8.40 per cent maturing in 2024 rose to Rs 102.1175 from weekend level of Rs 101.8450, while its yield fell to 8.07 per cent against 8.11 per cent.
The 8.27 per cent government security maturing in 2020 climbed to Rs 100.72 from Rs 100.5750, while its yield moved down to 8.09 per cent from 8.13 per cent.

The 8.60 per cent government security maturing in 2028 gained to Rs 103.37 compared to Rs 103.26, while its yield declined to 8.17 per cent from 8.19 per cent.
The 7.68 per cent government security maturing in 2023, the 7.72 per cent government security maturing in 2025 and the 8.15 per cent government security maturing in 2026 were also quoted higher at Rs 97.53, Rs 99.0175 and Rs 99.94, respectively.
The overnight call money rates eased to 7.05 against last Friday's closing level of 7.10 per cent after trading in a wide range of 7.30 per cent and 5.75 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 42.25 billion in 8-bids at the 1-day repo auction at a fixed rate of 7.25 per cent today morning, while it sold securities worth Rs 250.92 billion from 31-bids at the 2-days reverse repo auction at a fixed rate of 6.25 per cent as on June 13.