Bonds tumble on heavy selling as rupee hits fresh 30-mth low

Government bonds (G-Secs) prices retreated sharply after a brief rebound due to renewed selling pressure from corporates and foreign funds.
Heavy unwinding of bond portfolios by the Foreign Portfolio Investors (FPIs) against the backdrop of weakening rupee also dampened the sentiment.
The rupee slipped to end at fresh 30-month low of 68.61 against the US dollar - the lowest level so far this calendar year.
On the other hand, call money rates recovered owing to good demand from borrowing banks in the face of tight liquidity conditions in the banking system.
The 7.88 per cent government security maturing in 2030 dropped to Rs 98.05 as against Rs 98.35, while its yield rose to 8.11 per cent from 8.08 per cent.

The 7.59 per cent government security maturing in 2026 slumped to Rs 98.74 from Rs 98.98 previously, while its yield firmed up to 7.77 per cent from 7.74 per cent.

The 7.72 per cent government security maturing in 2025 plunged to Rs 98.48 compared to Rs 98.74, while its yield jumped to 7.95 per cent from 7.91 per cent.
The 8.27 per cent government security maturing in 2020, the 7.59 per cent government security maturing in 2029 and the 7.68 per cent government security maturing in 2023 were also quoted substantially lower at Rs 101.76, Rs 96.05 and Rs 98.31, respectively.

The overnight call money rates ended firmly higher at 6.80 per cent from last Thursday's close of 6.30 per cent. It opened strong at 6.90 per cent and moved in a range of 7.00 per cent and 6.55 per cent during the trade.
Meanwhile, the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF),purchased securities worth Rs 151.31 billion in 29-bids at one-day repo auction at a fixed rate of 6.75 per cent this evening.