Government bonds remain weak, call rates ends higher

Government bonds continued to remain lower on consistent selling pressure from banks and corporates, while 3-days money rates finished higher at the call money market here today on good demand from borrowing banks.

The 8.15 per cent government security maturing in 2022 fell to Rs 99.4675 from Rs 99.4950 previously, while its yield held steady at 8.23 per cent.

The 8.33 per cent government security maturing in 2026 slipped to Rs 99.88 from Rs 100.03, while its yield moved up to 8.34 per cent from 8.32 per cent.

The 8.20 per cent government security maturing in 2025 dipped to Rs 98.83 from Rs 98.93, while its yield inched up to 8.35 per cent from 8.34 per cent.

The 8.97 per cent government security maturing in 2030, the 8.83 per cent government security maturing in 2041 and 8.07 per cent government security maturing in 2017 also quoted lower at Rs 104.84, Rs 103.54 and Rs 99.47 respectively.

The three-day call money rate finished higher at 8.05 per cent from 8.00 per cent last Friday. It moved in a range of 8.10 per cent and 7.95 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,188.90 billion in 42 bids at the three-days repo auction at a fixed rate of 8.00 per cent, while sold securities worth Rs 0.05 billion in 1 bid at the three-days reverse repo auction at a fixed rate of 7 per cent in the evening auction.

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