Bonds rebound on fresh demand, call rates firm up

Government bonds (G-Secs) staged a smart rebound following renewed demand from corporates and banks, a day after the Reserve Bank of India slashed key policy rates.
The inter-bank call money rates also recovered due to good demand from borrowing banks in the face of tight liquidity conditions in the banking system.
The 7.88 per cent government security maturing in 2030 rose to Rs 100.7725 from Rs 100.59 yesterday, while its yield softened to 7.79 per cent from 7.81 per cent.
The 7.72 per cent government security maturing in 2025 jumped to Rs 100.39 compared to Rs 100.22 previously, while its yield eased to 7.66 per cent from 7.68 per cent.

The 7.59 per cent government security maturing in 2029 edged up to Rs 99.36 against Rs 99.30, while its yield inched down to 7.67 per cent from 7.68 per cent.
The 7.59 per cent government security maturing in 2026 gained to Rs 100.8650 from Rs 100.86, while its yield held steady at 7.46 per cent.

The 8.27 per cent government security maturing in 2020, the 7.28 per cent government security maturing in 2019 and the 7.68 per cent government security maturing in 2023 were also quoted firmly higher at Rs 103.29, Rs 100.03 and Rs 100.29, respectively.
The overnight call money rates ended higher at 6.30 per cent from Tuesday's closing level of 6.05 per cent after trading in a narrow range of 6.70 per cent and 6.00 per cent in early trade.

Meanwhile, Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 28.82 billion in 10-bids at the overnight repo auction at a fixed rate of 6.50 per cent this evening.