Government bonds react downwards, call rates ends higher

The government bonds reacted downwards on selling pressure from banks and corporates, while overnight money rates ended higher at the call money market here on Tuesday on good demand from borrowing banks.

The 8.15 per cent government security maturing in 2022 fell to Rs 99.66 from Rs 99.72 previously, while its yield inched up 8.20 per cent from 8.19 per cent.

The 8.33 per cent government security maturing in 2026 dropped to Rs 100.2625 from Rs 100.3175, while its yield edged up to 8.30 per cent from 8.29 per cent.

The 8.97 per cent government security maturing in 2030 slid to Rs 105.40 from Rs 105.4750, while its yield held steady at 8.38 per cent.

The 8.19 per cent government security maturing in 2020 and the 8.20 per cent government security maturing in 2025 also quoted lower at Rs 99.85 and Rs 99.22 respectively.

The overnight call money rate finished higher at 8.10 per cent from 8.05 per cent yesterday. It moved in a range of 8.15 per cent and 7.95 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,047.10 billion in 41 bids at the one-day repo auction at a fixed rate of 8.00 per cent, while sold securities worth Rs 0.30 billion in 1 bid at the one-day reverse repo auction at a fixed rate of 7 per cent in the evening auction.

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