Bonds surges, call rate recovers

The government bonds (G-Sec) surged on fresh demand from banks and corporates and the call money rates also recovered smartly on renewed demand from borrowing banks amidst lack of liquidity in the banking system.
The 8.60 per cent government security maturing in 2028 climbed to Rs 100.9175 from Rs 100.8075 previously, while its yield fell to 8.48 per cent from 8.50 per cent.
The 8.40 per cent government security maturing in 2024 rose to Rs 100.27 from Rs 100.17, while its yield edged down to 8.36 per cent from 8.37 per cent.
The 8.83 per cent government security maturing in 2023 also gained to Rs 101.8375 from Rs 101.66, while its yield moved down to 8.53 per cent from 8.56 per cent.

The 8.27 per cent government security maturing in 2020, the 7.16 per cent government security maturing in 2023 and the 8.35 per cent government security maturing in 2022 were also ended higher at Rs 99.2550, Rs 91.65 and Rs 98.95 respectively.
The overnight call money rates resumed higher at 8.80 per cent from previous close of 8.25 per cent and moved in the range of 9.10 per cent and 8.80 per cent before finishing at 9.00 per cent and the 5-days call money also opened at 8.80 per cent and closed at 9.00 per cent.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 212.09 billion in 55-bids at the 5-days repo auction at a fixed rate of 8.00 per cent today morning, while its sold securities worth Rs 77.21 billion from 24-bids at the one-day reverse repo auction held yesterday evening at a fixed rate of 7.00 per cent.