Government bonds remain firm on sustained demand, call rate end lower

The government securities (G-Sec) remained firm on sustained demand 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 8.33 per cent G-Sec maturing in 2026 strengthened to Rs 100.9950 from Rs 100.9050 previously, while its yield inched down to 8.21 per cent from 8.22 per cent.

The 8.15 per cent G-Sec maturing in 2022 edged up to Rs 100.25 from Rs 100.24, while its yield held steady at 8.11 per cent.

The 8.20 per cent G-Sec maturing in 2025 also shot up to Rs 100.02 from Rs 99.90, while its yield moved down to 8.19 per cent from 8.21 per cent.

The 8.97 per cent G-Sec maturing in 2030, the 8.07 per cent maturing in 2017 and the 8.19 per cent maturing in 2020 also quoted higher at Rs 106.27, Rs 99.98 and Rs 100.11 respectively.

The Overnight call money rate finished lower at 8.05 per cent from yesterday's close of 8.15 per cent. It moved in a range of 8.20 per cent and 7.90 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,309.80 billion in 45 bids at the one-day repo auction at a fixed rate of 8.00 per cent, while sold securities worth Rs 2.45 billion in 3-bids at the 1-day reverse repo auction at a fixed rate of 7 per cent in the evening auction.

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