Bonds turn bearish, call rate ends lower

The government securities (G-Sec) turned bearish on selling pressure from banks corporates and the call money rates ended lower at the overnight call money market here today due to lack of demand from borrowing banks amidst ample liquidity in the banking system.
The 8.83 per cent government security maturing in 2023 dropped to Rs 99.89 from Rs 100.05 previously, while its yield climbed to 8.84 per cent from 8.82 per cent.
The 7.28 per cent government security maturing in 2019 eased to Rs 92.97 from Rs 93.00, while its yield inched-up to 8.94 per cent from 8.93 per cent.
The 8.28 per cent government security maturing in 2037 also fell to Rs 92.59 from Rs 92.74, while its yield gained at 9.24 per cent from 9.22 per cent.

The 8.12 per cent government security maturing in 2020, the 7.16 per cent government security maturing in 2023 and the 8.24 per cent government security maturing in 2027 were also down at Rs 95.1650, Rs 87.63 and Rs 92.25, respectively.
The overnight call money rate finished lower at 7.75 per cent from 8.85 per cent yesterday. It moved in a range of 8.65 per cent and 7.15 per cent.
The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 411.94 billion in 61-bids at the one-day repo auction at a fixed rate of 7.75 per cent, while sold securities worth Rs 36.18 billion from 14-bids at the one-day reverse repo auction at a fixed rate of 6.75 per cent in the evening auction.