Gilts surges; call rates recovers

The government bond (G-Sec) prices surged following sustained buying support from banks and corporates.
The overnight call money market recovered owing to fresh demand from borrowing banks.
The 8.40 per cent government security maturing in 2024 rose to Rs 104.1725 as against Rs 104.07 previously, while its yield held steady at 7.76 per cent.
The 8.60 per cent government security maturing in 2028 climbed to Rs 106.82 compared to Rs 106.68, while yield moved down to 7.76 per cent from 7.79 per cent.
The 8.27 per cent government security maturing in 2020 gained to Rs 102.05 from Rs 101.93, while yield fell to 7.78 per cent from 7.81 per cent.

The 8.83 per cent government security maturing in 2023 also advanced to Rs 106.11 from Rs 106.08, while yield eased to 7.84 per cent from 7.85 per cent.

The 8.12 per cent government security maturing in 2020 the 8.15 per cent government security maturing in 2026 and the 8.28 per cent government security maturing in 2027 also quoted substantially higher at Rs 101.28, Rs 103.07 and Rs 103.40 respectively.
The overnight call money rates ended higher at 7.75 per cent from 7.25 per cent last Friday. It fluctuated between a high of 8.45 per cent and a low of 6.50 per cent earlier.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 199.83 billion in 43-bids at the 1-day repo auction at a fixed rate of 7.50 per cent today.