Govt bonds decline on selling pressure, call rates decline

Mumbai: Government bonds (G-Secs) declined on selling pressure from banks and corporates and the Interbank call rates also turned lower due to lack of demand from borrowing banks amidst ample liquidity situation in the banking system.

The 7.59 per cent government bond maturing in 2026 slipped to Rs 104.53 from Rs 104.6175 previously, while its yield inched up to 6.91 per cent from 6.90 per cent.

`The 7.61 per cent government security maturing in 2030 fell to Rs 105.0650 from Rs 105.0700, while its yield ruled steady to 7.02 per cent.

The 6.97 per cent government security maturing in 2026 dipped to Rs 101.03 from Rs 101.0850, while its yield held stable to 6.82.

The 7.59 per cent government security maturing in 2029, the 7.68 per cent government security maturing in 2023 and the 7.88 per cent government security maturing in 2030 were also quoted lower at Rs 104.47, Rs 104.5025 and Rs 107.02 respectively.

The overnight call money rates edged down at 6.24 per cent from Wednesday's close at 6.25 per cent. It resumed steady at 6.25 per cent and moved in a range of 6.25 per cent and 6.05 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 37.84 billion in a 8-bids at the overnight repo auction at a fixed rate of 6.25 per cent as on today, while it sold securities worth Rs 46.28 billion from 20-bids at the overnight reverse repo auction at a fixed rate of 5.75 per cent as on November 2.