Gilts turn bearish, call money firms up

The government bonds prices dropped on the back of intense selling from banks and corporates, while call rates firmed up following renewed demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 declined to Rs 99.4250 from Rs 99.69, while its yield spiked to 8.92 per cent from 8.87 per cent yesterday.
The 8.28 per cent government security maturing in 2027 slipped to Rs 91.99 from Rs 92.10 previously, while yield edged up to 9.33 per cent from 9.32 per cent.
The 7.28 per cent government security maturing in 2019 fell to Rs 92.70 from Rs 92.89, while yield rose to 9.05 per cent from 9.00 per cent.

The 8.12 per cent government security maturing in 2020 moved down to Rs 94.2825 from Rs 94.46, while yield spurted to 9.27 per cent from 9.23 per cent.
The 8.24 per cent government security maturing in 2027, the 9.20 per cent government security maturing in 2030 and the 7.16 per cent government security maturing in 2023 also drifted to Rs 91.81, Rs 99.30 and Rs 86.81 as compared with Rs 91.95, Rs 99.4050 and Rs 87.05, respectively.
The overnight call money rate regained to 7.95 per cent from 7.30 per cent Tuesday. It fluctuated between a high 8.15 per cent and a low of 7.50 per cent earlier.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 290.57 billion in 41-bids at the 2-day repo auction at a fixed rate of 8.00 per cent today morning, while sold securities worth Rs 48.40 billion from 13-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.