Gilts turn bearish, call rates remain firm

The government bond prices dropped on fresh selling from banks and corporates, while the overnight call money market continued to rule firm due to presistent demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 dropped to Rs 100.2925 from Rs 100.65, while its yield moved up to 8.78 per cent from 8.73 per cent.
The 8.28 per cent government security maturing in 2027 declined to Rs 93.9325 from Rs 94.23, while yield gained to 9.07 per cent from 9.03 per cent.
The 7.28 per cent government security maturing in 2019 also fell to Rs 93.98 from Rs 94.08, while its yield edged up to 8.78 per cent from 8.75 per cent.

The 8.24 per cent government security maturing in 2027, the 8.12 per cent government security maturing in 2020 and the 8.35 per cent government security maturing in 2022 were also quoted lower at Rs 93.78, Rs 96.06 and Rs 96.87, respectively.
The overnight call money rate finished better at 9.00 per cent from yesterday's level of 8.95 per cent after fluctuating between a high of 9.10 per cent and a low of 8.50 per cent earlier.
Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 213.07 billion in 59-bids at the 2-days repo auction at a fixed rate of 8.00 per cent today morning, while sold securities worth Rs 20.74 billion from ten-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.