Bonds end mixed; call rates rebound on good demand

The Government bond (G-Sec) prices showed a mixed trend due to uneven demand and supply as well as lack of market-moving factors.
While, call rate recovered smartly following renewed demand from borrowing banks amid tight liquidity in the banking system.
The 8.40 per cent government security maturing in 2024 rose to Rs 104.2525 from Rs 104.21 yesterday, while its yield softened to 7.75 per cent from 7.76 per cent.
The 8.27 per cent government security maturing in 2020 also firmed up to Rs 101.9850 compared to Rs 101.97, while yield moved down to 7.79 per cent from 7.80 per cent.

However, the 8.60 per cent government security maturing in 2028 declined to Rs 106.84 against Rs 106.88 previously, while yield held steady at 7.76 per cent.
The 8.15 per cent government security maturing in 2026 dropped to Rs 103.25 from Rs 103.4225, while yield edged up to 7.72 per cent from 7.70 per cent.

The 8.83 per cent government security maturing in 2023 also slipped to Rs 106.14 from Rs 106.22, while yield gained to 7.84 per cent from 7.83 per cent.
The overnight call money rates finished higher at 7.40 per cent from 6.90 per cent Monday after moving in a tight band of 7.70 per cent and 6.75 per cent in early trade.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 32.97 billion in 9-bids at the 1-day repo auction at a fixed rate of 7.50 per cent this morning, while it sold securities worth Rs 126.73 billion from 36-bids at the 1-day reverse repo auction at a fixed rate of 6.50 per cent late yesterday.