Bonds remain bearish, call rates recover

Government bonds prices maintained its bearish trend on presistent unwinding from banks and corporates amid speculation that interest rates could stay higher ahead of the RBI monetary policy review this week.
Meanwhile, overnight call money rates recovered on the back of renewed demand from borrowing banks.
The 8.83 per cent government security maturing in 2023 fell to Rs 100.40 from Rs 100.58 previously, while its yield gained to 8.77 per cent from 8.74 per cent.
The 8.28 per cent government security maturing in 2027 slipped to Rs 93.40 from Rs 93.75, while yield climbed to 9.13 per cent from 9.09 per cent.

The 8.12 per cent government security maturing in 2020 also declined to Rs 95.68 from Rs 95.9150, while yield moved up to 8.97 per cent from 8.92 per cent.
The 7.28 per cent government security maturing in 2019, the 8.24 per cent government security maturing in 2027 and the 7.16 per cent government security maturing in 2023 were also quoted lower at Rs 93.55, Rs 93.28 and Rs 88.10, respectively.
The overnight call money rate finished higher at 7.75 per cent from 7.60 per cent last Friday. It moved in a range of 8.35 per cent and 7.40 per cent.

The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 377.05 billion in 60-bids at the 1-day repo auction at a fixed rate of 7.75 per cent, while sold securities worth Rs 25.09 billion from 3-bids at the 3-days reverse repo auction at a fixed rate of 6.75 per cent.