Bonds edge up, call rates easy

Profit-taking at every rise today prevented an extended bonds rally even as select securites managed to post mild gains in a general downward bias while call rates held steady around 4.95-5.05% at the overnight call money market on the back of comfortable funds.

Bargain hunting projected a modest rally in key bonds, despite profit-selling paring sharp early gains even as the general trend remained mostly depressed on concerns over a possible strain in liquidity due to auction outflows and rising global oil prices, dealers said.

Benchmark 7.38% 2015 stock edged up to Rs 101.60/65 from Rs 101.56/60 yesterday with the yield falling by a single basis point to 7.15% while the 7.37% 2013 bond inched down to Rs 101.05/10 from Rs 101.10/20. Actively traded 8.07% 2017 paper was quoted at Rs 105.60/65.

State governments sold Rs 7,300 crore worth of bonds yesterday while the central government is scheduled to issue Rs 4,000 crore worth of bonds between May 16 and 24.

Crude oil surged to $49.29 a barrel on us refining capacity concerns.

The 6.65% 2009 bond inched down to Rs 100.10/15 from rs 100.15/20, the 7.55% 2010 stock moved down to Rs 102.95/103.00 from Rs 103.10/11, the 9.39% 2011 gil ended lower at Rs 111.65/75 from Rs 111.75/85 and the 6.85% 2012 paper edged up to Rs 99.38/42 from Rs 99.35/40.

Call rates ended steady at 4.95-5.05% after rulin around 5.00-5.05% following an opening quote of 4.90-5.00%.

RBI mopped up Rs 23,515 crore at the one day fixed rate reverse repo auction today at 5%, under the liquidity adjustment facility.