Bonds decline on fresh selling; call rates retreat

The Government bond (G-Sec) prices declined following renewed selling pressure from corporates and market participants.
The overnight call money rate also moved down at the money market due to lack demand from borrowing banks on the back of ample liquidity in the banking system.
The 8.40 per cent government security maturing in 2024 dropped to Rs 104.10 from Rs 104.2525 yesterday, while its yield firmed up to 7.77 per cent from 7.75 per cent.
The 8.60 per cent government security maturing in 2028 slipped to Rs 106.66 compared to Rs 106.84, while yield rose to 7.78 per cent from 7.76 per cent.

The 8.27 per cent government security maturing in 2020 slumped to Rs 101.97 against Rs 101.9850, while yield gained to 7.80 per cent from 7.79 per cent.
The 8.15 per cent government security maturing in 2026 also edged lower to Rs 103.0650 from Rs 103.25, while yield climbed to 7.74 per cent from 7.71 per cent.

The 8.83 per cent government security maturing in 2023 the 8.12 per cent government security maturing in 2020 and the 8.35 per cent government security maturing in 2022 also quoted substantially lower at Rs 106.06, Rs 101.1850 and Rs 102.56, respectively.
The overnight call money rates ended lower at 6.90 from Tuesday's closing level of 7.40 per cent. It moved in a range of 7.60 per cent and 6.50 per cent earlier.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 36.17 billion in 10-bids at the 1-day repo auction at a fixed rate of 7.50 per cent this morning, while it sold securities worth Rs 78.94 billion from 29-bids at the 1-day reverse repo auction at a fixed rate of 6.50 per cent late yesterday.