Bonds extend gains; call rates remain higher

Government bonds (G-Secs) extended gains on consistent buying support from banks and corporates and the overnight call money rate remained higher at the money market due to sustained demand from borrowing banks amid tight liquidity in the banking system.
The 8.40 per cent 10-year benchmark bond maturing in 2024 climbed to Rs 103.61 from Rs 103.4850 previously, while its yield eased to 7.86 per cent from 7.87 per cent.
The 8.60 per cent government security maturing in 2028 rose to Rs 105.5875 from Rs 105.49, while its yield moved down to 7.92 per cent from 7.93 per cent.
The 8.27 per cent government security maturing in 2020 also advanced to Rs 101.28 from Rs 101.1050, while its yield fell to 7.97 per cent from 8.01 per cent.

The 8.15 per cent government security maturing in 2026, the 8.15 per cent government security maturing in 2026 and the 8.28 per cent government security maturing in 2027 were also quoted higher at Rs 102.22, Rs 102.2950 and Rs 110.62, respectively.
The overnight call money rates ended higher at 8.95 per cent from Tuesday's closing level of 8.10 per cent. It resumed higher at 8.95 and moved in a range of 9.25 per cent and 8.40 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 180.37 billion in 51-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today, while it sold securities worth Rs 91.46 billion from 21-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent as on December 30.