Bonds up on good buying support

Government bond prices firmed up on good buying support from banks and companies.

The 8.79 per cent government security maturing in 2021 hardened to Rs 102.26 from Rs 101.68 previously, while its yield declined to 8.45 per cent from 8.53 per cent. The 9.15 per cent government security maturing in 2024 rose to Rs 104.28 from Rs 103.70, while its yield fell to 8.59 per cent from 8.67 per cent.

The 7.83 per cent government security maturing in 2018 shot up to Rs 97.20 from Rs 96.84, while its yield dropped to 8.41 per cent from 8.48 per cent. The 7.80 per cent government security maturing in 2021, the 8.97 per cent government security maturing in 2030 and the 8.08 per cent government security maturing in 2022 were also quoted higher at Rs 95.65, Rs 102.42 and Rs 97.05, respectively.

 

The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 79,940 crore from 36 bids at repo auction for fixed 8.50 per cent, while it sold securities worth Rs 5 crore from one bid at a reverse repo auction for 7.50 per cent.

Call rate recovers
The call rate recovered at the overnight call money market here on Monday due to fresh demand from borrowing banks and companies. The rate closed slightly higher at 8.65 per cent from Friday’s close of 8.60. It moved in a range of 8.65 per cent and 8.55 per cent.