Bonds maintain uptrend, call rates ends lower
Mumbai: The Government securities (G-Sec) maintained its uptrend on persistent demand from banks and corporates, while the call money rates also finished lower at the overnight call money market here on Tuesday due to lack of demand from borrowing banks.
The 8.15 percent G-Sec maturing in 2022 gained Rs 101.71 from Rs 101.5250 on Monday, while its yield eased to 7.88 percent from 7.91 percent.
The 8.07 percent G-Sec maturing in 2017 climbed to Rs 101.1075 from Rs 101.07, while its yield inched down to 7.75 percent from 7.76 percent.
The 8.33 percent G-Sec maturing in 2026 also surged to Rs 102.9550 from Rs 102.7525, while its yield moved down to 7.96 percent from 7.99 percent.
The 8.20 percent G-Sec maturing in 2025, the 8.97 percent maturing in 2030 and the 8.12 percent maturing in 2020 also quoted higher at Rs 101.92, Rs 107.66 and Rs 101.83 respectively.
The overnight call money rate finished lower at 7.60 percent from 7.70 percent previously. It moved in a range of 7.65 percent and 7.00 percent.
The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 1,035.90 billion in 31 bids at the one-day repo auction at a fixed rate of 7.50 percent, while sold securities worth Rs 6.25 billion in three-bids at the 1-day reverse repo auction at a fixed rate of 6.50 percent in the evening auction.