Bonds surge, call rates end lower

The overnight call money rates ended lower at 7.60 percent from yesterday's closing level of 7.65 percent. It moved in a range of 8.20 percent and 7.05 percent.

Mumbai: Government bonds (G-Secs) surged further on sustained buying support from banks and corporates while, the overnight call money rate ended lower at the money market due to subdued demand from borrowing banks amid ample liquidity in the banking system.

The 8.40 percent government security maturing in 2024 rose to Rs 103.50 from Rs 103.41 previously, while its yield moved down to 7.85 percent from 7.87 percent.

The 7.72 percent government security maturing in 2025 climbed to Rs 100.5050 from Rs 100.33, while its yield moved down to 7.65 percent from 7.67 percent.

The 8.15 percent government security maturing in 2026 also gained to Rs 101.85 from Rs 101.74, while its yield fell to 7.90 percent from 7.92 percent.

The 8.60 percent government security maturing in 2028, 8.27 percent government security maturing in 2020 and 8.83 percent government security maturing in 2023 were also quoted higher at Rs 105.61, Rs 101.6725 and Rs 105.3875, respectively.

The overnight call money rates ended lower at 7.60 percent from yesterday's closing level of 7.65 percent. It moved in a range of 8.20 percent and 7.05 percent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 186.57 billion in a 45-bids at the 1-day repo auction at a fixed rate of 7.50 percent as on today, while it sold securities worth Rs 28.75 billion from 18-bids at the 1-day overnight reverse repo auction at a fixed rate of 6.50 percent as on May 27.

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