Bonds turns bearish, call rate ends lower

The government securities (G-Sec) turned bearish on selling pressure from banks and corporates and the overnight call money market rates also ended lower due to lower demand from borrowing banks.
The 8.83 per cent 10-year benchmark bond maturing in 2023 fell to Rs 100.25 from Rs 100.2750 previously, while its yield edged-up by 8.79 per cent from 8.78 per cent.
The 8.12 per cent government security maturing in 2020 eased to Rs 95.28 from Rs 95.29, while yield held stable at 9.07 per cent.
The 7.28 per cent government security maturing in 2019 also declined to Rs 93.39 from Rs 93.42, while yield held steady at 8.89 per cent.

The 8.24 per cent government security maturing in 2027, the 5.69 per cent government security maturing in 2018 and the 7.37 per cent government security maturing in 2014 were also quoted lower at Rs 93.22, Rs 88.45 and Rs 99.87, respectively.
The overnight call money rate finished lower at 7.25 per cent from 8.95 per cent yesterday and it moved in a wide range of 9.00 per cent and 7.25 per cent.
The Reserve Bank of India (RBI) under the Liquidity Adjustment Facility (LAF) purchased securities worth Rs 387.33 billion in 60-bids at the 1-day repo auction at a fixed rate of 8.00 per cent today morning, while sold securities worth Rs 34.55 billion from 15-bids at the 1-day reverse repo auction at a fixed rate of 7.00 per cent yesterday evening.