Government securities (G-Secs) firmed up on good buying supports from banks and companies.
The 8.79 per cent G-Sec maturing in 2021 improved further to Rs 103.97 from Tuesday’s close of Rs 103.78, while its yield moved down to 8.19 per cent from 8.22 per cent.
The 9.15 per cent G-Sec maturing in 2024 hardened to Rs 106.62 from Rs 106.43, while its yield eased to 8.30 per cent from 8.32 per cent. The 7.83 per cent G-Sec maturing in 2018 moved up to Rs 98.10 from Rs 98.03, while its yield looked down to 8.22 per cent from 8.24 per cent. The 7.80 per cent G-Sec maturing in 2021, the 8.19 per cent G-sec maturing in 2020, the 8.97 per cent G-sec maturing in 2030 and the 8.28 per cent G-Sec maturing in 2032 were also ended higher at Rs 97.02, Rs 100.15, Rs 104.32 and Rs 98.10, respectively.
The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 1,56,650 crore from 64 bids at the one-day repo auction at a fixed rate of 8.50 per cent.
Corporate bond yields edged lower on Wednesday, comforted by the central bank’s debt buyback plan aimed at infusing liquidity in a cash-strapped banking system. The five-year yield ended 3 basis points lower at 9.39 percent, while the 10-year corporate bond yield held steady at 9.29 percent. Debt issuances by Indian companies are likely to fizzle, ahead of the central bank’s monetary policy review next week.
Call rate declines
The call rate declined at the overnight call money market here on Wednesday due to lack of demand from borrowing banks. The rate closed lower at 8.60 per cent, compared with yesterday’s closing of 9.00 per cent. It moved in a range of 9.55 per cent and 8.50 per cent.