Bonds surge, call rates end higher

The government bonds (G-Secs) surged on persistent demand from banks and corporates, while call rates ended higher due to good demand from borrowing banks amidst lack of liquidity in the banking system.
The 8.40 per cent government security maturing in 2024 advanced to Rs 101.36 from Rs 100.91 previously, while its yield declined to 8.19 per cent from 8.26 per cent.
The 8.60 per cent government security maturing in 2028 rose to Rs 102.6875 from Rs 102.0425, while its yield moved eased to 8.27 per cent from 8.34 per cent.
The 8.83 per cent government security maturing in 2023 also climbed to Rs 103.3750 from Rs 102.90, while its yield fell to 8.29 per cent from 8.37 per cent.

The 8.27 per cent government security maturing in 2020, the 8.28 per cent government security maturing in 2027 and the 8.35 per cent government security maturing in 2022 also ended higher at Rs 100.1475, Rs 99.92 and Rs 100.32, respectively.
The overnight call money rates resumed higher at 7.70 per cent from previous close of 7.10 per cent and moved in a range of 8.15 per cent and 7.25 before closing at 8.00 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 9.21 billion in 3-bids at the two-days repo auction at a fixed rate of 8.00 per cent today morning.

The RBI sold securities worth Rs 244.22 billion from 40-bids at the 3-days reverse repo auction held on Nov 1, 2014 at a fixed rate of 7.00 per cent.