Government bonds reacts downward, call rates recover

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

The 8.15 per cent government security maturing in 2022 moved down to Rs 99.86 from Rs 99.87 previously, while its yield held steady at 8.17 per cent.

The 8.33 per cent government security maturing in 2026 dropped to Rs 100.62 from Rs 100.6625, while its yield held stable at 8.25 per cent.

The 8.20 per cent government security maturing in 2025 slipped to Rs 99.63 from Rs 99.66, while its yield also held unchanged at 8.24 per cent.

The 8.97 per cent government security maturing in 2030, the 8.19 per cent government security maturing in 2020 and 8.07 per cent government security maturing in 2017 were also quoted lower at Rs 105.85, Rs 100.01 and Rs 99.81, respectively.

The overnight call money rate finished higher at 7.90 per cent from 7.00 per cent previously. It moved in a range of 8.10 per cent and 7.60 per cent.

The Reserve Bank of India under the Liquidity Adjustment Facility purchased securities worth Rs 907.90 billion in 29 bids at the one-day repo auction at a fixed rate of 8.00 per cent, while sold securities worth Rs 10.00 billion in one-bid at the one-day reverse repo auction at a fixed rate of 7 per cent in the evening auction.

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