Government securities recovered on renewed buying by banks and companies.
The 8.79 per cent government security maturing in 2021 recouped slightly to Rs 99.7550 from Rs 99.73 last weekend, while its yield remained stable at 8.83 per cent. The 7.83 per cent government security maturing in 2018 also rose to Rs 94.97 from Rs 94.926, while its yield eased to 8.88 per cent from 8.89 per cent previously.
The 9.15 per cent government security maturing in 2024 edged up to Rs 101.3375 from Rs 101.30, while its yield softened to 8.97 per cent from 8.98 per cent. The 8.13 per cent government security maturing in 2022, the 7.80 per cent government security maturing in 2021 and the 8.28 per cent government security maturing in 2027 also ended higher at Rs 94.80, Rs 93.46 and Rs 93.12, respectively.
The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 1,27,335 crore from 49 bids at a one-day repo auction at a fixed rate of 8.50 per cent while it sold securities worth Rs 10 crore from one bid at reverse repo auction at a fixed 7.50 per cent.
CALL RATE FIRM
The call rate remained firm at the overnight call money market on Monday, owing to lack of liquidity in the system and continued demand from borrowing banks. The overnight call rate settled at 8.75 per cent, compared with 8.70 per cent last Friday. It moved in the range of 8.80 per cent and 8.65 per cent.