Gilts remains bullish, call rate recovers

The government bond (G-Sec) prices continued to remain firm on sustained demand from banks and corporates.
The overnight and the three-days call money rate recovered on good demand from borrowing banks amidst tight liquidity in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 shot up to Rs 102.0250 from Rs 101.94, while its yield fell to 8.51 per cent from 8.53 previously.
The 8.28 per cent government security maturing in 2027 gained to Rs 97.85 as against Rs 97.32, while its yield dipped to 8.55 per cent from 8.62.
The 8.12 per cent government security maturing in 2020 climbed to Rs 98.34 as against Rs 98.12 yesterday, while its yield moved down to 8.46 per cent from Rs 8.50 per cent.

The 8.35 per cent government security maturing in 2022 also rose to Rs 99.12 from Rs 98.91, while yield softened to 8.50 per cent from 8.54 per cent.

The 8.60 per cent government security maturing in 2028, 7.16 per cent government security maturing in 2023 and 7.80 per cent government security maturing in 2020 were also quoted higher at Rs 101.54, Rs 91.31 and Rs 96.96, respectively.
The call rate resumed slightly higher at 7.70 per cent and gained further to 8.25 per cent before settling at 8.00 per cent from 7.60 per cent yesterday. The 3-days call money rate also climbed to 8.45 per cent as against 7.40 per cent last Friday. It moved in a range of 9.00 per cent and 7.50 per cent earlier.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 24.85 billion in 7-bids at the 3-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 38.60 billion from 16-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.