Bonds surge; call rate ends lower

The government bond (G-Sec) surged on the good buying support from banks and corporates.
While, the call money ended lower at the overnight call money market here today due to lack of demand from borrowing banks amid tight liquidity conditions in the banking system.
The 8.40 per cent 10-year benchmark bond maturing in 2024 climbed to Rs 103.12 from Rs 102.84 previously, while its yield fell to 7.93 per cent from 7.97 per cent.
The 8.60 per cent government security maturing in 2028 rose to Rs 105.1475 from Rs 104.81, while its yield fell to 7.97 per cent from 8.00 per cent.

The 8.27 per cent government security maturing in 2020 moved up to Rs 100.8775 from Rs 100.7250, while its yield edged-down to 8.07 per cent from 8.10 per cent.
The 8.83 per cent government security maturing in 2023, the 8.12 per cent government security maturing in 2020 and the 8.28 per cent government security maturing in 2027 were also quoted higher from Rs 104.9275, Rs 100.2275 and Rs 101.94, respectively.
The overnight call money rates ended lower at 8.00 per cent from yesterday's close of 8.50 per cent. It resumed higher at 8.85 per cent and moved in a range of 9.25 per cent and 8.00 per cent.

Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 224.18 billion in 57-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while its sold securities worth Rs 17.58 billion from 14-bids at 1-day reverse repo auction at a fixed rate of 7.00 per cent as on December 17.