Government security prices today soared by one to two rupees on the back of the 25 basis points cut in the repo rate and abundant liquidity in the inter-bank call money market. Call money closed soft today at 5.25-5.50 per cent as against the previous close of 5.50-5.75 per cent.
The benchmark 7.40 per cent 2012 paper opened at Rs 99.10 (yield : 7.53 per cent) and edged up in early trades to Rs 99.25 (7.51 per cent). At this higher level it met with some resistance. However, once the repo rate cut came through, the 10-year paper surged to Rs 100.50 (7.33 per cent) and was last dealt at Rs 99.95 (7.41 per cent).
At the long-end the 9.85 per cent 2015 paper opened at Rs 115.45 (7.95 per cent), soared to Rs 118 (7.67 per cent) on the back of the repo rate cut and was last dealt at Rs 117.30 (7.74 per cent). The short-tenor 12.50 per cent 2004 paper opened at Rs 109.44 (6.65 per cent) and closed at Rs 109.50 (6.61 per cent).
Call money today opened easy at 5.80-6.00 per cent. With demand outstripping supply stray deals were even reported at 4.75 per cent. During the course of the day