Gilts retreat after 2-day rally; call rates slips

The Government bond (G-Sec) prices dropped following fresh selling pressure from banks and corporates amid profit-taking by market participants.
The call money rate also declined at the overnight call money market on the back of subdued demand from borrowing banks in the face of adequate liquidity in the banking system.
The 8.40 per cent government security maturing in 2024 fell back to Rs 104.21 as against Rs 104.28 last weekend, while its yield rose to 7.76 per cent from 7.7463 per cent.
The 8.15 per cent government security maturing in 2026 slumped to Rs 103.4225 from Rs 103.74, while yield surged to 7.70 per cent from 7.65 per cent.

The 8.60 per cent government security maturing in 2028 shed to Rs 106.88 compared to Rs 106.92, while yield moved up to 7.76 per cent from 7.75 per cent.
The 8.27 per cent government security maturing in 2020 dipped to Rs 101.97 from Rs 102.05, while yield climbed to 7.80 per cent from 7.78 per cent.

The 8.83 per cent government security maturing in 2023 the 8.12 per cent government security maturing in 2020 and the 9.20 per cent government security maturing in 2030 also quoted substantially lower at Rs 106.22, Rs 101.26 and Rs 111.59 respectively.
The overnight call money rates ended lower at 6.90 per cent from 7.90 per cent last Friday. It fluctuated between a high of 7.90 per cent and a low of 6.25 per cent earlier.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 126.04 billion in 35-bids at the 1-day repo auction at a fixed rate of 7.50 per cent today.