Bonds recover, call rates turn lower
Government bonds (G-Secs) recovered following fresh demand from corporates and banks, while, the overnight call money rates turned lower due to lack of demand from borrowing banks amid comfortable liquidity in the banking sytem.
The 7.17 per cent government security maturing in 2028 rose to Rs 96.85 from Rs 96.57, while, its yield moved down to 7.63 per cent from 7.67 per cent.
The 6.79 per cent government security maturing in 2027 gained to Rs 93.2450 from Rs 93.06, while, its yield edged down to 7.83 per cent from 7.86 per cent.
The 6.68 per cent government security maturing in 2031 climbed to Rs 89.9725 from Rs 89.73, while, its yield eased to 7.90 per cent from 7.93 per cent.
The 6.84 per cent government security maturing in 2022, the 7.72 per cent government security maturing in 2025 and the 7.16 per cent government security maturing in 2023 were also quoted higher to Rs 97.73, Rs 100.25 and Rs 98.50 respectively.
The overnight call money rates finished lower to 5.80 per cent from last Friday's closing level of 5.90 per cent. It opened at 6.00 per cent and moved in a range of 6.03 per cent and 5.70 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 36.40 billion in 6-bids at the overnight repo opertion at a fixed rate of 6.00 per cent as on today, while its sold securities worth Rs 166.46 billion in 50-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on March 09.