Gilts turn bearish, call rates recovers

The government bond (G-Sec) prices dropped on fresh selling from banks and corporates.
While, the overnight call money rate recovered due to good demand from borrowing banks amidst tight liquidity conditions in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 fell to Rs 101.08 from Rs 101.18, while its yield gained to 8.66 per cent from 8.64 previously.
The 8.28 per cent government security maturing in 2027 declined to Rs 95.89 from Rs 96.05, while yield moved up to 8.81 per cent from 8.79 per cent.
The 8.12 per cent government security maturing in 2020 dipped to Rs 97.08 as against Rs 97.1675, while edged-up to 8.72 per cent from Rs 8.70 per cent.

The 8.35 per cent government security maturing in 2022 eased to Rs 98.07 as compared Rs 98.16, while yield climbed to 8.69 per cent from 8.67 per cent.

The 8.24 per cent government security maturing in 2027, 7.28 per cent government security maturing in 2019 and 7.16 per cent government security maturing in 2023 were also quoted lower at Rs 95.70, Rs 94.8475 and Rs 89.95, respectively.
The overnight call money rates ended higher at 7.10 per cent from last Friday's level of 7.00 per cent. It moved in wide range of 8.25 per cent and 6.95 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 141.55 billion in 41-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 65.02 billion from 25-bids at the 3-days reverse repo auction at a fixed rate of 7.00 per cent last Friday.