Bonds slip, call rates turn higher
Government bonds (G-Secs) slipped on selling pressure from banks and corporates, while, the overnight call money rates turned higher following good demand from borrowing banks amid tight liquidity in the banking system.
The 6.79 per cent 10-year benchmark bond maturing in 2027 declined to Rs 93.5175 from Rs 93.68 previously, while its yield edged up to 7.78 per cent from 7.76 per cent.
The 6.68 per cent government security maturing in 2031 dipped to Rs 90.02 from Rs 90.36, while its yield moved up to 7.89 per cent from 7.84 per cent.
The 7.17 per cent government security maturing in 2028 fell to Rs 97.00 from Rs 97.29, while its yield rose to 7.60 per cent from 7.56 per cent.
The 6.84 per cent government security maturing in 2022, the 7.61 per cent government security maturing in 2030 and the 7.72 per cent government security maturing in 2025 were also quoted lower to Rs 97.62, Rs 97.7950 and Rs 100.09 respectively.
The overnight call money rates finished higher at 6.00 per cent from last Friday's closing level of 5.65 per cent. It resumed higher at 6.00 per cent and moved in a range of 6.00 per cent and 5.75 per cent.
Meanwhile, Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 25.40 billion in 5-bids at the overnight repo auction at a fixed rate of 6.00 per cent today morning, while it sold securities worth Rs 44.66 billion in 20-bids at the 2-days reverse repo auction at a fixed rate of 5.75 per cent as on February 3.