Gilts slip on lower demand; call rate ends higher

Government bonds (G-Sec) prices slipped following subdued demand from banks and corporates.
However, overnight call money rate ended higher at the money market owing fresh demand from borrowing banks.
The 8.40 per cent government security maturing in 2024 fell by Rs 103.97 as compared to Rs 104.0350 yesterday, while its yield inched-up to 7.79 per cent from 7.78 per cent.
The 8.60 per cent government security maturing in 2028 declined to Rs 106.41 from Rs 106.5625, while yield moved-up to 7.81 per cent from 7.79 per cent.
The 8.15 per cent government security maturing in 2026 also dipped to Rs 103.41 compared to Rs 103.5350, while yield rose 7.70 per cent from 7.68 per cent.

The 8.27 per cent government security maturing in 2020 went down to Rs 101.7075 from Rs 101.7275, while yield held stable at 7.86 per cent.

The 8.83 per cent government security maturing in 2023 the 8.28 per cent government security maturing in 2027 and the 7.16 per cent government security maturing in 2023 also quoted lower at Rs 105.8625, Rs 103.25 and Rs 95.78, respectively.
The overnight call money rates finished higher at 6.65 per cent from Tuesday's level of 6.55 per cent moving in a range of 7.75 per cent and 6.50 per cent earlier.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 129.24 billion in 39-bids at the 1-day repo auction at a fixed rate of 7.50 per cent today morning, while it sold securities worth Rs 110.13 billion from 30-bids at the 1-day reverse repo auction at a fixed rate of 6.50 per cent late yesterday.