Bond prices continue to fall; call rates end soft

The government bond (G-Sec) prices weakened further on the back of sustained selling from corporates and market participants.
Call money rates turned bit soft at the overnight call money market due to lack of demand from borrowing banks amidst comfortable liquidity situation in the banking system.
The 8.60 per cent government security maturing in 2028 eased to Rs 106.58 from Rs 106.5850, while its yield held steady at 7.79 per cent.
The 8.27 per cent government security maturing in 2020 declined to Rs 101.94 from Rs 101.98, while yield moved up to 7.80 per cent compared to 7.79 per cent.

The 8.15 per cent government security maturing in 2026 fell to Rs 102.76 from Rs 102.78, while yield held stable at 7.78 per cent.
The 8.83 per cent government security maturing in 2023 drifted to Rs 105.89 from Rs 105.99, while yield gained to 7.87 per cent against 7.86 per cent.

The 8.28 per cent government security maturing in 2027 and the 9.20 per cent government security maturing in 2030 also quoted lower at Rs 103.36 and Rs 111.45, respectively.
However, the benchmark 8.40 per cent government security maturing in 2024 gained marginally to Rs 103.99 from Rs 103.9875 yesterday, while its yield held steady at 7.79 per cent.

The interbank call rates opened higher at 7.40 per cent against Tuesday's close of 6.60 per cent and edged up further to 7.70 per cent before sliding back to end at 6.50 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 19.29 billion in 7-bids at the 1-day repo auction at a fixed rate of 7.50 per cent this morning, while it sold securities worth Rs 228.98 billion from 35-bids at the 1-day reverse repo auction at a fixed rate of 6.50 per cent late yesterday.