Bonds decline; call rate remains lower

Government bonds (G-Sec) declined further on sustained selling pressure from banks and corporates amid profit-taking by market participants.
The call money continued to remain lower at the money market here today due to lack of demand from borrowing banks following tight liquidity conditions in the banking system.
The 8.40 per cent 10-year benchmark bond maturing in 2024 dropped to Rs 102.78 from Rs 102.90 previously, while its yield moved up to 7.98 per cent from 7.96 per cent.
The 8.60 per cent government security maturing in 2028 dipped to Rs 104.70 from Rs 104.8950, while its yield edged-up to 8.02 per cent from 8.00 per cent.

The 8.15 per cent government security maturing in 2026 also fell to Rs 101.32 from Rs 101.46, while its yield moved up to 8.97 per cent from 7.96 per cent.
The 8.27 per cent government security maturing in 2020, the 9.20 per cent government security maturing in 2030 and the 8.83 per cent government security maturing in 2023 were also quoted lower at Rs 100.78, Rs 109.67 and Rs 104.59, respectively.
The overnight call money rates ended lower at 7.50 per cent from Wednesday's close of 7.95 per cent. However, 3-day call money rates resumed higher at 8.20 percent and moved in a range of 8.50 and 7.75 per cent before finishing stable at its last Friday's level of 8.00 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 201.28 billion in 50-bids at the 3-days repo auction at a fixed rate of 8.00 per cent today morning, while its sold securities worth Rs 55.99 billion from 22-bids at 2-days reverse repo auction at a fixed rate of 7.00 per cent, as on Dec 24.