Bonds drop further, call rates finish higher

Government bonds (G-Secs)dropped further on sustained selling pressure from banks and corporates, while the overnight call money rates turned higher owing to sustained demand from borrowing banks amid tight liquidity in the banking system.
The 7.88 per cent government security maturing in 2030 moved down to Rs 99.11 from Rs 99.33 previously, while its yield moved up to 7.98 per cent from 7.96 per cent.
The 8.27 per cent government security maturing in 2020 fell to Rs 102.24 from Rs 102.34, while its yield edged up to 7.66 per cent from 7.63 per cent.
The 7.72 per cent government security maturing in 2025 declined to Rs 99.5450 from Rs 99.69, while its yield moved up to 7.79 per cent from 7.77 per cent.

The 7.28 per cent government security maturing in 2019, the 7.59 per cent government security maturing in 2029 and the 7.68 per cent government security maturing in 2023 were also quoted lower to Rs 99.1650, Rs 99.72 and Rs 99.52, respectively.
The overnight call money rates finished higher at 6.70 per cent from yesterday's closing level of 6.40 per cent. It resumed higher at 7.00 per cent and moved in a range of 7.10 per cent and 6.50 per cent.
Meanwhile, the Reserve Bank under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 158.38 billion in a 47-bids at the overnight repo auction at a fixed rate of 6.75 per cent as on today, while it sold securities worth Rs 37.38 billion from 26-bids at the one-day overnight reverse repo auction at a fixed rate of 5.75 per cent as on January 13.