Bonds recover on good demand, call rate ends lower

The Government securities (G-Sec) rose on good buying support from banks and corporates, while the call money rates ended lower at the overnight call money market here today due to lack of demand from borrowing banks amid ample liquidity in the banking system.

The 8.15 per cent G-Sec maturing in 2022 shot up to Rs 101.8325 from Rs 101.5750 yesterday, while its yield moved down to 7.86 per cent from 7.90 per cent.

The 8.20 per cent G-Sec maturing in 2025 surged to Rs 101.83 from Rs 101.6250, while its yield went down to 7.97 per cent from 7.99 per cent.

The 8.33 per cent G-Sec maturing in 2026 also climbed to Rs 102.9550 from Rs 102.75, while its yield declined to 7.96 per cent from 7.99 per cent.

The 8.07 per cent G-Sec maturing in 2017, the 8.12 per cent maturing in 2020 and the 9.15 per cent maturing in 2024 were also quoted higher at Rs 100.89, Rs 101.71 and Rs 108.12 respectively.

The Overnight call money rate finished lower at 7.75 per cent from previous close of 7.90 per cent. It moved in a range of 7.85 per cent and 7.60 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 925.00 billion in 33-bids at the 1-day repo auction at a fixed rate of 7.75 per cent, while it sold securities worth Rs 0.25 billion in 1-bid at the one-day reverse repo auction at a fixed rate of 6.75 per cent in the evening auction.

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