Government Bonds recover on good demand, call rate ends lower

The government securities (G-Sec) recovered on good buying support from banks and corporates, while call rates eased at the overnight call money market here today due to lack of demand from borrowing banks.

The 8.15 per cent G-Sec maturing in 2022 climbed to Rs 99.5975 from Rs 99.46 yesterday, while its yield moved down 8.21 per cent from 8.23 per cent.

The 8.33 per cent G-Sec maturing in 2026 surged to Rs 99.6150 from 99.4850, while its yield inched down to 8.38 per cent from 8.39 per cent.

The 8.19 per cent G-Sec maturing in 2020 also rose to Rs 99.39 from 99.34, while its yield edged down to 8.30 per cent from 8.31 per cent.

The 8.07 per cent G-Sec maturing in 2017, the 8.97 per cent maturing in 2030 and the 8.28 per cent maturing in 2032 also quoted higher at Rs 99.50, Rs 103.80 and Rs 97.40, respectively.

The Overnight call money rate finished lower at 7.50 per cent, it moved in a range of 7.60 per cent and 7.25 per cent and the three-day call money rate ended at 7.95 per cent it moved in a range of 8.05 per cent and 7.25 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 356.50 billion in 22 bids at the three-days repo auction at a fixed rate of 8.00 per cent, while sold securities worth Rs 20.10 billion from nine bids at the three-days reverse repo auction at a fixed rate of 7 per cent.

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