Government bonds react downwards, call rate ends lower

The government bonds dropped on heavy selling pressure from banks and corporates, while call rates also fell at the overnight call money market here today due to lack of demand from borrowing banks amidst ample liquidity in the banking system.

The 8.15 per cent government security maturing in 2022 dipped to Rs 100.0950 from 100.13 previously, while its yield held steady to 8.13 per cent.

The 8.33 per cent government security maturing in 2026 fell to Rs 100.8200 from 100.8550, while its yield inched up 8.23 per cent from 8.22 per cent.

The 8.19 per cent government security maturing in 2020 slid to Rs 100.1375 from Rs 100.1600 while its yield held stable to 8.16 per cent.

The 8.07 per cent government security maturing in 2017, the 8.97 per cent government security maturing in 2030 and the 8.20 per cent government security maturing in 2025 were also quoted lower at Rs 99.9425, Rs 106.00 and Rs 100.05 respectively.

The call money rate finished lower at 8.00 per cent from previous closing level of 8.15 per cent, it's moved in a range of 8.15 to 7.95 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 993.10 billion from 34 bids at the one-day repo auction at a fixed rate of 8 per cent.

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