Bond recovers on fresh buying , call rate improves further

The government securities (G-Sec) recovered on fresh buying support from banks and corporates while, the overnight call money market rate improved further due to sustained demand from borrowing banks.
The 8.24 per cent government security maturing in 2027 firmed up to Rs 93.75 from Rs 93.64, while its yield eased to 9.07 per cent from 9.09 per cent.
The 8.28 per cent government security maturing in 2027 rose to Rs 93.93 from Rs 93.85, while its yield softened to 9.07 per cent from 9.08 per cent.
The 8.35 per cent government security maturing in 2022 also moved up to Rs 96.85 from Rs 96.80, while its yield edged down to 8.91 per cent from 8.92 per cent.

The 8.12 per cent government security maturing in 2020, the 7.80 per cent government security maturing in 2020 and the 7.28 per cent government security maturing in 2019 also quoted higher at Rs 96.0750, Rs 95.00 and Rs 94.09, respectively.
The overnight call money rate finished slightly higher at 7.25 per cent from last weekend's close of 7.20 per cent and it moved in a wide range of 8.40 per cent and 6.90 per cent.
The Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 201.61 billion in 50-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 132.93 billion from 31-bids at the 3-days reverse repo auction at a fixed rate of 7.00 per cent as on evening of May 16.