Government bonds remains weak, call rates ends lower

The government bonds remained weak on sustained selling pressure from banks and corporates, while overnight call money rates ended lower at the money market due to lack of demand from borrowing banks.

The 8.15 per cent government security maturing in 2022 dropped to Rs 99.6125 from Rs 99.66 previously, while its yield edged up 8.21 per cent from 8.20 per cent.

The 8.33 per cent government security maturing in 2026 fell to Rs 100.23 from Rs 100.2625, while its yield held steady at 8.30 per cent.

The 8.20 per cent government security maturing in 2025 slid to Rs 99.15 from Rs 99.22, while its yield inched up 8.31 per cent from 8.30 per cent.

The 8.19 per cent government security maturing in 2020, the 8.07 per cent government security maturing in 2017 and 8.97 per cent government security maturing in 2030 also quoted lower at Rs 99.81, Rs 99.57 and Rs 105.35 respectively. The overnight call money rate finished lower at 8.00 per cent from 8.10 per cent yesterday. It moved in a range of 8.15 per cent and 7.95 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,069.70 billion in 39 bids at the one-day repo auction at a fixed rate of 8.00 per cent, while sold securities worth Rs 0.05 billion in 1 bid at the one-day reverse repo auction at a fixed rate of 7 per cent in the evening auction.

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