Gilts resume rally on good demand; call rates eases

The Government bond (G-Sec) prices rebounded smartly due to robust demand from bank and corporates.
While, call rates turned bit soft at the overnight call money market owing to lack of demand from borrowing banks amidst comfortable liquidity situation in the banking system.
The 8.40 per cent government security maturing in 2024 recouped to Rs 104.07 from Rs 103.93 yesterday, while its yield tumbled to 7.76 per cent from 7.80 per cent.
The 8.60 per cent government security maturing in 2028 regained to Rs 106.68 against Rs 106.52, while yield declined to 7.79 per cent from 7.80 per cent.
The 8.27 per cent government security maturing in 2020 rose to Rs 101.93 compared to Rs 101.86, while yield moved down to 7.81 per cent from 7.82 per cent.

The 8.15 per cent government security maturing in 2026 also firmed up to Rs 103.10 from Rs 102.94, while yield slipped to 7.74 per cent from 7.76 per cent.

The 8.83 per cent government security maturing in 2023 the 8.12 per cent government security maturing in 2020 and the 8.30 per cent government security maturing in 2042 also quoted firmly higher at Rs 106.08, Rs 101.23 and Rs 104.53, respectively.
The overnight call money rates opened higher at 7.60 per cent and moved in a wide range of 7.90 per cent and 6.50 per cent for most of the time. However, later it moved down to settle marginally lower at 7.25 per cent compared to Thursday's level of 7.30 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 83.04 billion in 23-bids at the 3-days repo auction at a fixed rate of 7.50 per cent this morning, while it sold securities worth Rs 63.83 billion from 30-bids at the 1-day reverse repo auction at a fixed rate of 6.50 per cent late yesterday.