Government bonds, call rate remain firm on good demand

The government securities (G-Sec) strengthened for the second straight day on consistent buying support from banks and corporates.
The overnight call money rates also spiked at the overnight call money market today on good demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 rose to Rs 99.8425 from Rs 99.79, while its yield softened to 8.85 per cent as against Rs 8.86.
The 8.28 per cent government security maturing in 2027 spurted to Rs 94.16 from Rs 93.93 while its yield eased to 9.04 per cent from 9.07 per cent.

The 8.12 per cent government security maturing in 2020 edged higher to Rs 96.12 from Rs 96.0750, while yield inched down to 8.91 per cent from Rs 8.92.
The 8.35 per cent government security maturing in 2022 also moved up to Rs 96.99 from Rs 96.85, while its yield edged down to 8.88 per cent from 8.91 per cent.

The 8.24 per cent government security maturing in 2027, the 7.16 per cent government security maturing in 2023 and the 7.80 per cent government security maturing in 2020 also quoted higher at Rs 93.9650, Rs 88.70 and Rs 95.0375, respectively.
The overnight call money rate firmed up to 7.50 per cent from 7.25 per cent Monday. It touched a high of 8.15 per cent earlier.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 144.80 billion in 35-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 82.45 billion from 23-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.