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Bonds drop on poor demand; call rates end lower

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Press Trust of India Mumbai
Last Updated : Jul 24 2015 | 6:57 PM IST
The government bond (G-Sec) prices dropped following renewed selling pressure from banks and corporates amid profit-taking by market participants ahead of weekend.
Interbank call money rate also finished lower owing to lack of demand from borrowing banks on the back of adequate liquidity conditions in the banking system.
The 10-year benchmark bond 7.72 per cent maturing in 2025 moved down to Rs 99.2375 from Rs 99.4200, while its yield went up to 7.83 per cent compared with 7.80 per cent.
The 8.40 per cent government security maturing in 2024 slid to Rs 102.48 against Rs 102.54, while its yield edged up to 8.01 per cent from 8.00 per cent.
The 7.68 per cent government security maturing in 2023 dropped to Rs 98.1650 from Rs 98.2775, while its yield rose to 7.98 per cent from 7.96 per cent.
The 7.88 per cent government security maturing in 2030 and the 8.27 per cent government security maturing in 2020 were also quoted lower at Rs 98.7500 and Rs 101.0725 respectively.

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The overnight call money rates finished lower at 6.80 per cent from 7.25 Thursday's closing level. It moved in a wide range of 7.20 per cent and 6.40 per cent.
Meanwhile, the three-days call money rate ended at 6 per cent.
Meanwhile, the Reserve Bank of India, under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 31.60 billion in 11-bids at overnight repo auction at a fixed rate of 7.25 per cent this morning, while its sold securities worth Rs 23.00 billion from 21-bids at the 3-days reverse repo auction at a fixed rate of 6.25 per cent yesterday evening.

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First Published: Jul 24 2015 | 6:57 PM IST

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