Bonds gain; call rates remain lower

The government bond (G-Sec) prices gained further on sustained buying support from banks and corporates.
Meanwhile, the overnight call money rate remained lower due to subdued demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 climbed to Rs 100.65 from Rs 100.58, while its yield fell to 8.72 per cent from 8.74 per cent previously.
The 8.60 per cent government security maturing in 2028 advanced to Rs 99.85 from Rs 99.8275, while its yield held stable at 8.62 per cent.
The 8.27 per cent government security maturing in 2020 also looked up to Rs 98.55 from Rs 98.3650, while its yield went down to 8.59 per cent from 8.63 per cent.

The 8.28 per cent government security maturing in 2027, 8.12 per cent government security maturing in 2020 and 8.35 per cent government security maturing in 2022 were also quoted higher at Rs 96.30, Rs 97.1550 and Rs 97.6750, respectively.
The overnight call money rates ended lower at 7.01 per cent from yesterday's level of 8.50 per cent. It moved in a range of 8.75 per cent and 7.00 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 213.13 billion in 57-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 64.20 billion from 8-bids at the 1-day reverse repo auction at a fixed rate of 7.00 percent yesterday evening.