Government bonds, call rates decline

Government bonds declined on selling pressure from banks and corporates, while overnight money rates also ended weak at the call money market here today due to lack of demand from borrowing banks.

The 8.15 per cent government security maturing in 2022 slipped to Rs 102.16 from Rs 102.28 yesterday, while its yield moved up at 7.82 per cent from 7.80 per cent.

The 8.33 per cent government security maturing in 2026 dropped to Rs 103.4250 from Rs 103.54, while its yield went up to 7.91 per cent from 7.89 per cent.

The 8.20 per cent government security maturing in 2025 dipped to Rs 102.3375 from Rs 102.47, while its yield edged-up at 7.90 per cent from 7.89 per cent.

The 8.07 per cent government security maturing in 2017, the 8.97 per cent government security maturing in 2030 and 8.12 per cent government security maturing in 2020 were also quoted lower at Rs 100.8750, Rs 108.53 and Rs 101.66, respectively.

The overnight call money rate finished lower at 7.75 per cent from 7.85 per cent yesterday. It moved in a range of 7.90 per cent and 7.70 per cent.

The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 1,152.90 billion in 39 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 one-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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