Government 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.

The 8.20 per cent G-Sec maturing in 2025 shot up to Rs 101.5200 from Rs 101.4775 yesterday, while its yield held steady at 8.00 per cent.

The 8.33 per cent G-Sec maturing in 2026 surged to Rs 102.5975 from Rs 102.54, while its yield inched down to 8.01 per cent from 8.02 per cent.

The 8.15 per cent G-Sec maturing in 2022 also rose to Rs 101.58 from Rs 101.54, while its yield remained stable to 7.91 per cent.

The 8.12 per cent G-Sec maturing in 2020, the 8.07 per cent maturing in 2017Jly and the 8.97 per cent maturing in 2030 also quoted higher at Rs 101.27, Rs 100.68 and Rs 108.07 respectively.

The Overnight call money rate finished lower at 7.50 per cent from yesterday close of 7.80 per cent. It moved in a range of 7.85 per cent and 7.50 per cent and the 3-days call money rate ended 7.78 per cent, it moved in a range of 7.90 and 7.68 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,090.95 billion in 38 bids at the 3-days repo auction at a fixed rate of 7.75 per cent, in the evening auction.

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