Bonds drop, call rates end lower

Government bonds (G-Secs) dropped further on heavy selling pressure from banks and corporates amidst profit-taking by market participants.
The call money also ended lower at the overnight call money market here today due to lack of demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.40 per cent 10-year benchmark bond maturing in 2024 fell to Rs 104.5650 from Rs 104.5750 previously, while its yield ruled stable to 7.71 per cent.
The 8.60 per cent government security maturing in 2028 slid to Rs 107.17 from Rs 107.20, while its yield held steady to 7.72 per cent.

The 8.15 per cent government security maturing in 2026, also dipped to Rs 103.85 from Rs 103.87, while its yield inched up to 7.65 per cent from 7.64 per cent.
The 8.27 per cent government security maturing in 2020, 8.28 per cent government security maturing in 2027 and the 9.20 per cent government security maturing in 2030 were also quoted lower at Rs 102.28, Rs 104.02 and Rs 112.6850 respectively.
The overnight call money rates ended lower at 7.00 per cent from monday's close of 7.75 per cent, it moved in a wide range of 8.15 per cent and 6.75 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 206.46 billion in 58-bids at the 2-days repo auction at a fixed rate of 7.75 per cent today morning, while it sold securities worth Rs 21.60 billion from 15-bids at the 2-days reverse repo auction at a fixed rate of 6.75 per cent as on February 16.