Bonds recovers, call rate remain higher

The government bond (G-Sec) recovered smartly on fresh buying support from banks and corporates.
The overnight call money rate remained higher due to sustained demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 shot-up to Rs 100.7025 from Rs 100.35, while its yield slipped to 8.72 per cent from 8.77 previously.
The 8.12 per cent government security maturing in 2020 recouped to Rs 97.00 from Rs 96.70, while yield declined to 8.74 per cent from 8.80 per cent.
The 8.60 per cent government security maturing in 2028 also rebounded to Rs 99.78 as against Rs 99.40, while yield fell to 8.63 per cent from 8.67 per cent.

The 8.28 per cent government security maturing in 2027 also climbed to Rs 96.12 as compared to Rs 95.80, while yield moved down to 8.78 per cent from Rs 8.82 per cent.

The 7.80 per cent government security maturing in 2020, 8.35 per cent government security maturing in 2022 and 8.24 per cent government security maturing in 2027 were also quoted higher at Rs 95.60, Rs 97.62 and Rs 95.92, respectively.
The overnight call money rates ended slightly higher at 8.30 per cent from 8.25 per cent yesterday. It moved in wide range of 9.00 per cent and 7.90 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 171.13 billion in 38-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while it sold securities worth Rs 16.18 billion from 13-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent last evening.