Bonds drop, call rates turn higher

Government bonds (G-Secs) dropped on selling pressure from banks and corporates. While, the overnight call money rates turned higher following good demand from borrowing banks amid ample liquidity in the banking system.
The 7.59 per cent government security maturing in 2026 moved down to Rs 102.6650 from Rs 102.8050 previously, while its yield rose to 7.20 per cent from 7.17 per cent.
The 7.59 per cent government security maturing in 2029 dipped to Rs 102.51 from Rs 102.71, while its yield edged up to 7.28 per cent from 7.26 per cent.
The 7.88 per cent government security maturing in 2030 fell to Rs 105.11 from Rs 105.36. While, its yield gained to 7.28 per cent from 7.25 per cent.

The 7.61 percent government security maturing in 2030, the 7.68 per cent government security maturing in 2023 and the 7.72 per cent government security maturing in 2025 were also quoted higher at Rs 103.1775, Rs 102.7650 and Rs 102.9225, respectively.
The overnight call money rates finished higher at 6.50 per cent from Tuesday's level 6.40 per cent. It resumed higher at 6.50 per cent and moved in a range of 6.75 per cent and 6.15 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 30.42 billion in 7-bids at the overnight repo auction at a fixed rate of 6.50 per cent as on today, while its sold securities worth Rs 27.15 billion from 24-bids at the overnight reverse repo auction at a fixed rate of 6.00 per cent as on August 2.