Gilts recovers on fresh demand; call rate remains higher

Government bond (G-Sec) prices recovered following good buying support from banks and corporates and the overnight call money rate remained higher at the money market owing sustained demand from borrowing banks.
The 8.40 per cent government security maturing in 2024 rose to Rs 104.21 as compared to Rs 103.97 yesterday, while its yield fell to 7.76 per cent from 7.79 per cent.
The 8.60 per cent government security maturing in 2028 climbed to Rs 106.72 from Rs 106.41, while yield moved-down to 7.77 per cent from 7.81 per cent.
The 8.27 per cent government security maturing in 2020 gained to Rs 101.88 from Rs 101.7075, while yield went-down to 7.82 per cent from 7.86 per cent.

The 8.15 per cent government security maturing in 2026 also advanced to Rs 103.68 from Rs 103.41,while yield declined to 7.67 per cent from 7.70 per cent.
The 8.83 per cent government security maturing in 2023 the 8.28 per cent government security maturing in 2027 and the 9.20 per cent government security maturing in 2030 also quoted higher at Rs 106.1150, Rs 103.49 and Rs 111.57, respectively.
The overnight call money rates finished higher at 7.70 per cent from Wednesday's level of 6.65 per cent. It moved in a range of 7.80 per cent and 7.30 per cent earlier.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 49.95 billion in 17-bids at the 1-day repo auction at a fixed rate of 7.50 per cent today morning, while it sold securities worth Rs 64.75 billion from 23-bids at the 1-day reverse repo auction at a fixed rate of 6.50 per cent late yesterday.