Bonds recover, call rates end higher

The government bond (G-Sec) prices recovered on buying support from banks and corporates and the overnight call rates ended higher on sustained demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.60 per cent government security maturing in 2028 climbed to Rs 99.5750 from Rs 99.2650 previously, while its yield moved down to 8.65 per cent from 8.69 per cent.
The 8.40 per cent government security maturing in 2024 declined to Rs 99.2850 from Rs 99.04, while yield eased to 8.51 per cent from 8.54 per cent.
The 8.83 per cent government security maturing in 2023 also gained to Rs 100.90 from Rs 100.7150, while yield gained fell to 8.68 per cent against 8.71 per cent.

The 8.27 per cent government security maturing in 2020, the 8.28 per cent government security maturing in 2027, the 8.12 per cent government security maturing in 2020 and the 7.28 per cent government security maturing in 2019 were also quoted higher at Rs 98.57, Rs 96.16, Rs 97.4075 and Rs 95.09, respectively.
The overnight call money rates finished higher at 7.70 per cent compared to 7.30 per cent yesterday after moving in range between 8.55 per cent and 7.00 per cent earlier.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 33.02 billion in 9-bids at the one day repo auction at a fixed rate of 8.00 per cent, while it sold securities worth Rs 45.48 billion from 17-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent, yesterday evening.