Gilts surge; call rates end lower

The government bond (G-Sec) prices surged on sustained buying support from banks and corporates.
While, the overnight call money rate ended lower at the money market due to subdued demand from borrowing banks amid ample liquidity in the banking system.
The 10-year benchmark bond 8.40 per cent maturing in 2024 rose to Rs 102.5750 from Rs 102.2875 previously, while its yield fell to 7.99 per cent as compared to 8.04 per cent.
The 7.72 per cent government security maturing in 2025 climbed to Rs 99.33 against Rs 99.0325, while its yield eased to 7.82 per cent from 7.86 per cent.

The 8.27 per cent government security maturing in 2020 advanced to Rs 100.9625 from Rs 100.8250, while its yield moved down to 8.03 per cent from 8.06 per cent.
The 7.88 per cent government security maturing in 2030, the 8.60 per cent government security maturing in 2028 and the 7.68 per cent government security maturing in 2023 were also quoted higher at Rs 98.74, Rs 103.91 and Rs 97.9475, respectively.
The overnight call money rates ended lower at 6.80 per cent compared to 7.20 per cent yesterday after trading in a tight range of 7.20 per cent and 6.25 per cent.

Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 31.65 billion in 9-bids at 1-day repo auction at a fixed rate of 7.25 per cent this morning. While, it sold securities worth Rs 191.33 billion from 33-bids at the 1-day Overnight reverse repo auction at a fixed rate of 6.25 per cent as on June 30.