Bonds extend gains, call rate slips

The government securities (G-Sec) extended its gained on consistent buying support from banks and corporates while, the overnight call money market rates slipped due to lack of demand from borrowing banks amidst ample liquidity in the banking system.
The 8.83 per cent 10-year benchmark bond maturing in 2023 surge to Rs 100.7150 from Rs 100.60 previously, while its yield edged-down 8.72 per cent from 8.73 per cent.
The 8.12 per cent government security maturing in 2020 climbed to Rs 95.2450 from Rs 95.1425, while yield moved down to 9.07 per cent from 9.09 per cent.
The 8.28 per cent government security maturing in 2027 also gained to Rs 93.20 from Rs 93.06, while yield eased to 9.17 per cent from 9.19 per cent.

The 7.28 per cent government security maturing in 2019, the 8.24 per cent government security maturing in 2027 and the 7.16 per cent government security maturing in 2023 were also quoted higher at Rs 93.50, Rs 93.00 and Rs 87.77, respectively.
The overnight call money rate finished lower at 8.10 per cent from 8.15 per cent yesterday and moved in a range of 8.60 per cent and 8.00 per cent.
The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 294.15 billion in 44-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while sold securities worth Rs 12.43 billion from 9-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last Friday.