Bonds drop, call rates end slightly higher

Government bonds (G-Secs) dropped further on sustained selling pressure from banks and corporates while the overnight call money rate ended higher at the money market due to good demand from borrowing banks amid tight liquidity in the banking system.

Mumbai: Government bonds (G-Secs) dropped further on sustained selling pressure from banks and corporates while the overnight call money rate ended higher at the money market due to good demand from borrowing banks amid tight liquidity in the banking system.

The 8.40 percent government security maturing in 2024 fell to Rs 103.26 from Rs 103.4375 previously, while its yield rose to 7.89 percent from 7.86 percent.

The 8.15 percent government security maturing in 2026 dipped to Rs 101.63 from Rs 101.88, while its yield rose to 7.93 percent from 7.90 percent.

The 8.60 percent government security maturing in 2028 declined to Rs 105.34 from Rs 105.58, while its yield increased to 7.93 percent from 7.91 percent.

The 8.27 percent government security maturing in 2020, 7.17 percent government security maturing in 2023 and 7.02 percent government security maturing in 2016 were also quoted lower to Rs 101.53, Rs 99.9425 and Rs 99.1125, respectively.

However, 7.72 percent government security maturing in 2025 gained to Rs 100.3150 from Rs 100.2625, while its yield edge-down to 7.67 percent from 7.68 percent.

The overnight call money rates ended slightly higher at 7.50 percent from yesterday's closing level of 7.45 percent. It moved in a range of 7.75 percent and 7.05 percent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 185.27 billion in a 44-bid at the 1-day repo auction at a fixed rate of 7.50 percent as on on Tuesday, while it sold securities worth Rs 39.27 billion from 21-bids at the 1-day overnight reverse repo auction at a fixed rate of 6.50 percent as on May 25.

By continuing to use the site, you agree to the use of cookies. You can find out more by clicking this link

Close